The Quarterly Income Statement for Largent Is as Follows: Sales

question 84

Multiple Choice

The quarterly income statement for Largent is as follows: Sales $1,600
Less variable expenses:
Direct materials $280
Direct labour 300
Manufacturing overhead 60
Administrative expenses 30
Selling expenses 70 740
Contribution margin 860
Less fixed expenses:
Manufacturing overhead $180
Administrative expenses 440
Selling expenses 100 720
Income before taxes $ 140
What total amount represents the product costs?

• A)$640
• B)$820
• C)$580
• D)$900

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Definitions:

Damages

A monetary compensation awarded to a person as a remedy for loss or injury caused by the unlawful act or omission of another.

Negligence

The failure to exercise the standard of care that a reasonably prudent person would have exercised in a similar situation, resulting in harm or damage.

Term

can refer to a fixed or limited period for which something, such as an agreement or tenure, lasts or is intended to last.

Misrepresented

Incorrectly or falsely represented information, which can lead to misunderstandings or legal issues within agreements or contracts.