Vegas Company has the following unit costs: Variable manufacturing overhead$25 Direct materials 20 Direct labor 19 Fixed manufacturing overhead 12 Variable marketing and administrative 7 Vegas produced and sold 10,000 units. If the product sells for $100, what is the operating profit using a contribution margin income statement?
A. $360,000
B. $290,000
C. $170,000
D. $240,000
Answer: C
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a. Warranty reserves. b. Pension obligations. c. Other postemployment benefits. d. Marketable securities.
Answer the following statements true (T) or false (F)
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Which of the following is NOT an implication of the going-concern assumption?
a. The historical cost principle is credible. b. Depreciation and amortization policies are justifiable and appropriate. c. The current/noncurrent classification of assets and liabilities is justifiable and significant. d. Amortizing research and development costs over multiple periods is justifiable and appropriate.