The Following Data Relate to Lebeaux Corporation for the Year

question 19

Multiple Choice

The following data relate to Lebeaux Corporation for the year just ended: $\begin{array}{lr}\text { Sales revenue }&\$750,000\\\text { Cost of goods sold: }\\{\text { Variable portion }} & 370,000 \\\text { Fixed portion } & 110,000 \\\text { Variable selling and administrative costs } & 50,000 \\\text { Fixed selling and administrative cost } & 75,000\end{array}$ Which of the following statements is correct?

• A) Lebeaux's variable-costing income statement would show a gross margin of $270,000.
• B) Lebeaux's variable costing income statement would show a contribution margin of $330,000.
• C) Lebeaux's absorption-costing income statement would show a contribution margin of $330,000.
• D) Lebeaux's absorption costing income statement would show a gross margin of $330,000.
• E) Lebeaux's absorption-costing income statement would show a gross margin of $145,000.

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Definitions:

Inflation

The pace at which the full spectrum of goods and services' pricing ascends, weakening the power of acquisition.

Value Of Money

The purchasing power of money, or the amount of goods and services that one unit of money can buy, often influenced by inflation.

Market Outcomes

The results of economic transactions and interactions in a market, including prices and quantities of goods and services traded.

Scarce Resources

Resources that are limited in availability and can run out if not used efficiently, leading to the necessity of making choices on how to allocate them.