Affinity Makes a Single Product, Pool Pumps How Much Is Net Income for the Year Under Full

question 2

Multiple Choice

Affinity makes a single product, pool pumps. Information for 2014 appears below (Assume the same unit costs in all years) : $$\begin{array} { l r } \text { Sales in units } & 5,800 \\\text { Production in units } & 6,200 \\\text { Beginning inventory } & 1,500 \\\text { Variable production cost per unit } & \$ 46.00 \\\text { Variable selling cost per unit } & \$ 6.00 \\\text { Fixed production cost per year } & \$ 31,000 \\\text { Fixed selling and administrative cost per year } & \$ 24,000 \\\text { Selling price per unit } & \$ 75.00\end{array}$$ How much is net income for the year under full costing?

• A) $78,400
• B) $80,400
• C) $87,600
• D) None of these answer choices are correct.

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Definitions:

Dividend Per Share

The total amount of dividends declared by a corporation for each outstanding share of common stock, reflecting the earnings distributed to shareholders.

Outstanding Shares

The cumulative quantity of a business's stocks that are distributed to and possessed by the stockholders.

Net Income

The amount of profit a company generates after accounting for all expenses, taxes, and costs.

Total Dividends

The sum of all dividend payments made by a company to its shareholders during a specific period.