Figure 17-1 The following data pertains to the Montrose Company's three products:
Refer to Figure 17-1. When Montrose converted over to ABC it discovered the following:
The product margin for product M using ABC would be
A) $9,000.
B) $19,000.
C) $13,840.
D) $27,000.

Question

Figure 17-1 The following data pertains to the Montrose Company's three products:
 Refer to Figure 17-1. When Montrose converted over to ABC it discovered the following:
 The product margin for product M using ABC would be
A) $9,000. 
B) $19,000. 
C) $13,840. 
D) $27,000.

Quizplus · Accepted Answer

Using ABC, Montrose discovered that the product margin for product M would be $13,840. This is calculated by taking the total revenue of $75,000 and subtracting the total cost of $61,160.

Figure 17-1 the Following Data Pertains to the Montrose Company's