Columbia Corporation produces a single product. The company's variable costing income statement for November appears below: Columbia Corporation Income Statement For the Month ended November 30 Sales ($18 per unit) $ 781,200 Variable expenses: Variable cost of goods sold 390,600 Variable selling expense 130,200 Total variable expenses 520,800 Contribution margin 260,400 Fixed expenses: Manufacturing 143,240 Selling and administrative 71,620 Total fixed expenses 214,860 Net operating income $ 45,540 During November, 35,810 units were manufactured and 8,850 units were in beginning inventory. Variable production costs per unit, total fixed manufacturing expenses, and the number of units produced were the same in prior months. Under absorption costing, for November the company would report a: Brewer 8e Rechecks 2018-06-22 rev: 06_25_2019_QC_CS-171749 Multiple Choice $71,620 profit $15,180 loss $15,180 profit $45,540 profit
Columbia Corporation produces a single product. The company's variable costing income statement for November appears below: Columbia Corporation Income Statement For the Month ended November 30 Sales ($18 per unit) $ 781,200 Variable expenses: Variable cost of goods sold 390,600 Variable selling expense 130,200 Total variable expenses 520,800 Contribution margin 260,400 Fixed expenses: Manufacturing 143,240 Selling and administrative 71,620 Total fixed expenses 214,860 Net operating income $ 45,540 During November, 35,810 units were manufactured and 8,850 units were in beginning inventory. Variable production costs per unit, total fixed manufacturing expenses, and the number of units produced were the same in prior months. Under absorption costing, for November the company would report a: Brewer 8e Rechecks 2018-06-22 rev: 06_25_2019_QC_CS-171749 Multiple Choice $71,620 profit $15,180 loss $15,180 profit $45,540 profit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Columbia Corporation produces a single product. The company's variable costing income statement for November appears below:
Columbia Corporation
Income Statement
For the Month ended November 30
Sales ($18 per unit) $ 781,200
Variable expenses:
Variable cost of goods sold 390,600
Variable selling expense 130,200
Total variable expenses 520,800
Contribution margin 260,400
Fixed expenses:
Manufacturing 143,240
Selling and administrative 71,620
Total fixed expenses 214,860
Net operating income $ 45,540
During November, 35,810 units were manufactured and 8,850 units were in beginning inventory. Variable production costs per unit, total fixed manufacturing expenses, and the number of units produced were the same in prior months.
Under absorption costing, for November the company would report a:
Brewer 8e Rechecks 2018-06-22
rev: 06_25_2019_QC_CS-171749
Multiple Choice
$71,620 profit
$15,180 loss
$15,180 profit
$45,540 profit
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