Wind Fall, a manufacturer of leaf blowers, began operations this year. During this year, the company produced 10,000 leaf blowers and sold 8,500. At year-end, the company reported the following income statement using absorption costing: Sales (8,500 × $45) Cost of goods sold (8,500 × $20) Gross margin Selling and administrative expenses Net income Production costs per leaf blower total $20, which consists of $16 in variable production costs and $4 in fixed production costs (based on the 10,000 units produced). Fifteen percent of total selling and administrative expenses are variable. Compute net income under variable costing. Multiple Choice $158,500 $246,500 $206,500 $382,500 170,000 $212,500 60,000 $152,500 $237.500

Wind Fall, a manufacturer of leaf blowers, began operations this year. During this year, the company produced 10,000 leaf blowers and sold 8,500. At year-end, the company reported the following income statement using absorption costing: Sales (8,500 × $45) Cost of goods sold (8,500 × $20) Gross margin Selling and administrative expenses Net income Production costs per leaf blower total $20, which consists of $16 in variable production costs and $4 in fixed production costs (based on the 10,000 units produced). Fifteen percent of total selling and administrative expenses are variable. Compute net income under variable costing. Multiple Choice $158,500 $246,500 $206,500 $382,500 170,000 $212,500 60,000 $152,500 $237.500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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