EBK PEARSON ETEXT INTERNATIONAL BUSINES
9th Edition
ISBN: 9780136846871
Author: Wild
Publisher: VST
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Chapter 14.3, Problem 3QS3
Summary Introduction
To Determine:
The distribution system of the product with low-value density
Introduction:
A product is anything which is to be sold in the market. The value density of the product is relative to its volume and weight.
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A company produces a single product. Last year, fixed manufacturing overhead was $30,000, variable production costs were $48,000, fixed selling and administration costs were $20,000, and variable selling administrative expenses were $9,600. There was no beginning inventory. During the year, 3,000 units were produced and 2,400 units were sold at a price of $40 per unit. Under variable costing, net operating income would be ........
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