A business operated at 100% of capacity during its first month and incurred the following costs:
If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, what is the amount of the manufacturing margin that would be reported on the absorption costing income statement?
A) $50,000
B) $54,000
C) not reported
D) $70,000

Question

A business operated at 100% of capacity during its first month and incurred the following costs:  
If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, what is the amount of the manufacturing margin that would be reported on the absorption costing income statement?
A) $50,000 
B) $54,000 
C) not reported 
D) $70,000

Quizplus · Accepted Answer

The Answer of A business operated at 100% of capacity during its first month and incurred the following costs:  
If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, what is the amount of the manufacturing margin that would be reported on the absorption costing income statement?
A) $50,000 
B) $54,000 
C) not reported 
D) $70,000

A Business Operated at 100% of Capacity During Its First