Franz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $9; fixed manufacturing costs, $60,000; variable selling and administrative costs per unit, $2; and fixed selling and administrative costs, $220,000. The company sells its units for $45 each. Additional data follow. Planned production in units 10,000 Actual production in units 10,000 Number of units sold 8,500 - The net income (loss) under absorption costing is: A. $(7,500) B. $9,000 C. $15,000 D. $18,000 - The net income (loss) under variable costing is: A. $(7,500) B. $9,000 C. $15,000 D. $18,000
Franz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $9; fixed manufacturing costs, $60,000; variable selling and administrative costs per unit, $2; and fixed selling and administrative costs, $220,000. The company sells its units for $45 each. Additional data follow. Planned production in units 10,000 Actual production in units 10,000 Number of units sold 8,500 - The net income (loss) under absorption costing is: A. $(7,500) B. $9,000 C. $15,000 D. $18,000 - The net income (loss) under variable costing is: A. $(7,500) B. $9,000 C. $15,000 D. $18,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Franz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $9; fixed manufacturing costs , $60,000; variable selling and administrative costs per unit, $2;
and fixed selling and administrative costs, $220,000. The company sells its units for $45 each.
Additional data follow.
Planned production in units 10,000
Actual production in units 10,000
Number of units sold 8,500
- The net income (loss) under absorption costing is:
A. $(7,500)
B. $9,000
C. $15,000
D. $18,000
- The net income (loss) under variable costing is:
A. $(7,500)
B. $9,000
C. $15,000
D. $18,000
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