Q.112.Assume that a company maintains no beginning or ending inventories and produces and sells 4,000 units of only one product for a price of $130 per unit. The company's variable manufacturing costs per unit are $80, and its fixed manufacturing overhead per unit is $24. Its variable selling and administrative expenses are $12 per unit, and its fixed selling and administrative expenses are $45,700. What is the company's net operating income under absorption costing? a. $8,300 b. $10,300 c. $14,300 d. $6,300
Q.112.Assume that a company maintains no beginning or ending inventories and produces and sells 4,000 units of only one product for a price of $130 per unit. The company's variable manufacturing costs per unit are $80, and its fixed manufacturing overhead per unit is $24. Its variable selling and administrative expenses are $12 per unit, and its fixed selling and administrative expenses are $45,700. What is the company's net operating income under absorption costing? a. $8,300 b. $10,300 c. $14,300 d. $6,300
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Q.112.Assume that a company maintains no beginning or ending
inventories and produces and sells 4,000 units of only one product
for a price of $130 per unit. The company's variable manufacturing
costs per unit are $80, and its fixed manufacturing overhead per
unit is $24. Its variable selling and administrative expenses are $12
per unit, and its fixed selling and administrative expenses are
$45,700. What is the company's net operating income under
absorption costing?
a. $8,300
b. $10,300
c. $14,300
d. $6,300
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