Year 1 Year 2 Units (spice racks) produced. Units (spice racks) sold Absorption costing net operating income. Variable costing net operating income. . 40,000 40,000 41,000 37,000 P44,000 P52,000 P38,000 ??? О а. Р48,000 ОБ. Р50,000 c. P54,000 O d. P56,000

Year 1 Year 2 Units (spice racks) produced. Units (spice racks) sold Absorption costing net operating income. Variable costing net operating income. . 40,000 40,000 41,000 37,000 P44,000 P52,000 P38,000 ??? О а. Р48,000 ОБ. Р50,000 c. P54,000 O d. P56,000

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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Question

Arbiter Corporation manufactures and sells a spice rack. Shown below are the actual operating results for the first two years of operations: (See image) WMSU's cost structure and selling price were the same for both years. What is WMSU’s variable costing net operating income for Year 2?

Year 1
Year 2
Units (spice racks) produced
Units (spice racks) sold
Absorption costing net operating income.
Variable costing net operating income.
40,000
37,000
P44,000
P38,000
40,000
41,000
P52,000
???
a. P48,000
b. P50,000
O c. P54,000
O d. P56,000

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