During 2013,Rubble Company Purchased Marketable Equity Securities as a Short-Term

question 22

Multiple Choice

During 2013,Rubble Company purchased marketable equity securities as a short-term investment and classified them as trading securities.The cost and market value at December 31,2013,were as follows: Rubble sold 1,000 shares of Company Y stock on March 16,2014,for $24 per share,incurring $1,300 in brokerage commissions and taxes.On the sale,Rubble should report a realized loss of

• A) $0.
• B) $1,550
• C) $2,300
• D) $2,800

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Definitions:

Fixed Manufacturing Overhead

Regular, consistent costs associated with operating a manufacturing facility that do not vary with the level of production, such as salaries and rent.

Contribution Margin

The amount by which a product's selling price exceeds its total variable costs, contributing to covering fixed costs and generating profit.

Production Constraint

A limitation or bottleneck in a manufacturing process that affects the overall output.

Contribution Margin Ratios

The proportion of sales revenue that remains after variable costs are subtracted, indicating how well a company can cover fixed costs and generate profits.