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If Variable Cost of Goods Sold Totaled $80,000 for the Year

Question 68

Multiple Choice

If variable cost of goods sold totaled $80,000 for the year (16,000 units at $5.00 each) and the planned variable cost of goods sold totaled $86,250 (15,000 units at $5.75 each) ,the effect of the quantity factor on the change in contribution margin is:


A) $5,000 decrease
B) $5,000 increase
C) $5,750 increase
D) $5,750 decrease

Correct Answer:

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