Leheny Corporation Manufactures and Sells One Product

question 18

Multiple Choice

Leheny 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 55,000 units and sold 50,000 units. The company's only product is sold for $238 per unit.
The net operating income for the year under super-variable costing is:

• A) $1,400,000
• B) $1,110,000
• C) $1,005,000
• D) $580,000

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Definitions:

Muscle Fiber

A single muscle cell, known for its long, cylindrical shape and role in contracting to produce movement.

Contractions

The action of muscle fibers shortening or tensing, which can produce movement or apply force, a fundamental process in muscle function.

Sarcoplasmic Reticulum

A specialized type of smooth endoplasmic reticulum found in muscle cells, involved in calcium storage and release for muscle contraction.

Active Transport

The movement of molecules across a cell membrane from a region of lower concentration to one of higher concentration, requiring energy.