McArthur Corp

question 48

Multiple Choice

McArthur Corp., which began business at the start of the current year, had the following data:
Planned and actual production: 40,000 units
Sales: 38,000 units at $15 per unit
Production costs:
Variable: $5 per unit
Fixed: $260,000
Selling and administrative costs:
Variable: $1 per unit
Fixed: $32,000
The gross margin that the company would disclose on an absorption-costing income statement is:

• A) $0.
• B) $133,000.
• C) $166,500.
• D) $342,000.
• E) None of the other answers are correct.

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Definitions:

Inhibitory

Pertaining to a neurotransmitter, hormone, or other substance that decreases the likelihood of a neuron firing an action potential.

Excitatory

Referring to substances or processes that increase the likelihood of a neuron firing and transmitting an electrical signal.

Dopamine

A neurotransmitter involved in reward, motivation, and addiction processes in the brain.

Parkinson's Disease

A neurodegenerative disorder that affects movement, often including tremors.