Chamiching Makes Hacksaw Blades In the First Year,variable Costs Accounted for Half of the First

question 4

Multiple Choice

Chamiching makes hacksaw blades.Inventory values are determined using the first in,first out (FIFO) method.Production and sales data for the first three years appear below. $\begin{array}{ccc}\text { Hacksaw blades } & \text { Sold } & \text { Produced } \\\text { Yr } 1 & 18,000 & 22,000 \\\text { Yr } 2 & 25,000 & 23,000 \\\text { Yr } 3 & 37,000 & 35,000\end{array}$
$$\begin{array} { l l c } & \text { Sales price } & \text { Full Cost } \\Yr 1 & \$ 10.00 & \$ 6.00 \\\text { Yr } 2& \$ 11.00 & \$ 6.60 \\Yr 3 & \$ 12.00 & \$ 7.60\end{array}$$ In the first year,variable costs accounted for half of the full costs.Total fixed production costs increased each subsequent year by 20%,as a result of step-fixed costs and a general inflationary price increase.
For Chamiching,if variable costing is used,which of the following is true?

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Safe Environment

A setting or conditions that minimize risk of harm or danger to individuals, emphasizing health, security, and well-being.

Equipment

Tools, devices, or machinery designed for a specific purpose or function, often used to carry out particular tasks more efficiently or safely.

Nursing Interventions

Actions undertaken by nurses to enhance patient outcomes, ranging from direct patient care to coordinating healthcare services.

Bed Rest

A medical treatment that involves lying in bed for most of the day to aid in the recovery of an illness or condition.