Erie Corporation Manufactures a Single Product That It Sells for $35

question 269

Multiple Choice

Erie Corporation manufactures a single product that it sells for $35 per unit. The company has the following cost structure: There were no units in inventory at the beginning of the year. During the year 30,000 units were produced and 25,000 units were sold.
The company's net operating income under variable costing would be:

• A) $407,500
• B) $421,250
• C) $431,250
• D) $417,500

---

Definitions:

IQ

Intelligence Quotient, a measure of a person's intellectual abilities in relation to their age group.

Identical Twins

Twins who originate from the same fertilized egg, sharing 100% of their genes, and typically having very similar physical appearances.

Intellectual Development

The growth and change in intellectual capabilities such as learning, problem-solving, and decision-making over a person's lifetime.

Genetics

The branch of biology that deals with heredity and the variation of inherited characteristics among similar or related organisms.