Zintec Has Fixed Manufacturing Costs of $400,000 and Produces 10,000

question 55

Multiple Choice

Zintec has fixed manufacturing costs of $400,000 and produces 10,000 and sells 8,000 wagons during the year.There is no beginning inventory.Which of the following conclusions can be drawn?

• A)Variable costing income will be $80,000 higher than full costing income.
• B)Full costing income will be $80,000 higher than variable costing income.
• C)Variable and full costing income will be the same.
• D)There is not enough information to draw a conclusion.

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