WebFlicks Is an Online DVD Company That Produces Its Own

question 48

Multiple Choice

WebFlicks is an online DVD company that produces its own DVD copies of first-run movies that it sells for $8.00 each. The following information is available (Assume the same unit costs in all years) : $\begin{array}{ll}\text { Variable costs: }\\\text { Product royalty fees } & \$ 3.30 \text { per DVD } \\\text { DVD production } & \$ 1.20 \text { per DVD } \\\text { Selling and admin costs } & \$ 0.80 \text { per DVD }\\\text { Fixed Costs: }\\\text { Production } & \$ 128,000 \text { per month } \\\text { Selling and administration } & \$ 130,000 \text { per month }\end{array}$ During June, 160,000 DVDs were produced and 144,000 were sold. There were 17,000 DVDs in beginning inventory. How much is net income per month under full costing?

• A) $143,600
• B) $130,640
• C) $130,800
• D) None of these answer choices are correct.

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Definitions:

Attributing Behavior

The process of inferring the reasons behind others' actions and behaviors.

Internal Causes

refer to factors within an individual, such as personal beliefs or emotions, that influence their behavior or actions.

External Causes

Factors outside an individual's or organization's control that affect outcomes or conditions, often contrasted with internal causes.

Stereotyping

The act of categorizing individuals into specific groups based on preconceived notions or characteristics, often leading to biased judgments and actions.