Marcelin Corporation Manufactures and Sells One Product

question 37

Multiple Choice

Marcelin Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 51,000 units and sold 46,000 units. The company's only product is sold for $276 per unit.
The net operating income for the year under super-variable costing is:

• A) $1,593,000
• B) $1,023,000
• C) $1,978,000
• D) $1,483,000

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Definitions:

Splinting

A medical procedure that involves the application of a stiff material to an area of the body to immobilize it, allowing for proper healing of injuries.

Abdominal Incision

A surgical cut made in the abdomen, either for medical procedures or for access to internal organs.

Postoperative

Pertaining to the period after a surgical operation.

Anesthesia

A medical procedure involving drugs that result in a temporary loss of sensation or awareness, used primarily during surgical operations.