Keyser Corporation, Which Has Only One Product, Has Provided the Following

question 135

Multiple Choice

Keyser Corporation, which has only one product, has provided the following data concerning its most recent month of operations: The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.
What is the net operating income for the month under absorption costing?

• A) $7,000
• B) $4,600
• C) $11,600
• D) $24,200

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Definitions:

Physics

The natural science that studies matter, its motion and behavior through space and time, and the related entities of energy and force.

Predicate

The component of a sentence or proposition that asserts something about the subject, often involving a verb.

Proposition

A statement or assertion that expresses a judgment or opinion; in logic, a declarative sentence that is either true or false.

Term

A word or expression used in relation to a specific subject or context; in logic, it refers to a concept or object within a proposition.