During Its Most Recent Fiscal Year, Simon Enterprises Sold 200,000

question 129

Multiple Choice

During its most recent fiscal year, Simon Enterprises sold 200,000 electric screwdrivers at a price of $15 each. Fixed costs amounted to $400,000 and pretax income was $600,000. What amount should have been reported as variable costs in the company's contribution margin income statement for the year in question?

• A) $2,400,000.
• B) $1,600,000.
• C) $3,000,000.
• D) $2,000,000.
• E) $1,000,000.

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Definitions:

Physiological Needs

basic physical requirements for human survival, such as air, water, food, shelter, and sleep, representing the base layer of Maslow's Hierarchy of Needs.

Physical Closeness

The proximity or physical distance between individuals, which can impact communication, collaboration, and interpersonal relationships.

Self-actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.

Productivity

The measure of efficiency in which goods or services are created, often evaluated as the output per unit of input.