Two years ago, we started a company to manufacture and sell small sail boats. Below are our selected actual operating results for the first two years of operations (cost structures and selling are the same for year 1 and year 2). Year 1 Year 2 Units produced 40,000 40,000 Units sold 37,000 41,500 Absorption Costing NOI $77,500 ?? Variable costing NOI $71,500 ?? $15,000 $15,000 Fixed S&A expenses What is the variable costing net operating income in year 2? A. $87,250 B. $83,500 C. $89,500 D. $91,750 E. $86,800

Two years ago, we started a company to manufacture and sell small sail boats. Below are our selected actual operating results for the first two years of operations (cost structures and selling are the same for year 1 and year 2). Year 1 Year 2 Units produced 40,000 40,000 Units sold 37,000 41,500 Absorption Costing NOI $77,500 ?? Variable costing NOI $71,500 ?? $15,000 $15,000 Fixed S&A expenses What is the variable costing net operating income in year 2? A. $87,250 B. $83,500 C. $89,500 D. $91,750 E. $86,800

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter12: Activity-based Management

Section: Chapter Questions

Problem 2CE: Assume that at the beginning of 20x2, Cicleta trained the 2 assembly workers in a new approach that...

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