Business, 27.10.2021 03:20 evanwall91

Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Per Unit Per Year
Selling price $200
Direct materials $77
Direct labor $50
Variable manufacturing overhead $10
Sales commission $8
Fixed manufacturing overhead $292,000

Which of the following choices explains the relationship between the absorption costing net operating income and the variable costing net operating income?

a. The absorption costing net operating income will be lower than the variable costing net operating income by $30,000.
b. The absorption costing net operating income will be lower than the variable costing net operating income by $102,000.
c. The absorption costing net operating income will be higher than the variable costing net operating income by $30,000.
d. The absorption costing net operating income will be higher than the variable costing net operating income by $102,000.

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 19:30

What would be the input, conversion and output of developing a new soft drink

Answers: 3

Answer

Business, 22.06.2019 01:00

Azster inc. recorded sales revenue for the year that ended december 31, 2014 as $67,000. interest revenue of $5,300 and expenses of $14,000 were also recorded for the same period. what is aster’s net profit or loss?

Answers: 3

Answer

Business, 22.06.2019 03:00

Match each item to check for while reconciling a bank account with the document to which it relates. (there's not just one answer) 1. balancing account statement 2. balancing check register a. nsf fees b. deposits in transit c. interest earned d. bank errors

Answers: 3

Answer

Business, 22.06.2019 07:00

Pennewell publishing inc. (pp) is a zero growth company. it currently has zero debt and its earnings before interest and taxes (ebit) are $80,000. pp's current cost of equity is 10%, and its tax rate is 40%. the firm has 10,000 shares of common stock outstanding selling at a price per share of $48.00. refer to the data for pennewell publishing inc. (pp). pp is considering changing its capital structure to one with 30% debt and 70% equity, based on market values. the debt would have an interest rate of 8%. the new funds would be used to repurchase stock. it is estimated that the increase in risk resulting from the added leverage would cause the required rate of return on equity to rise to 12%. if this plan were carried out, what would be pp's new value of operations? a. $484,359 b. $521,173 c. $584,653 d. $560,748 e. $487,805

Answers: 1

Answer

You know the right answer?

Assume the following information for a company that produced 10,000 units and sold 9,000 units durin...

Questions