Bernardo Company Reported the Following Units of Production and Sales

question 145

Multiple Choice

Bernardo Company reported the following units of production and sales for August and September 2018: $\begin{array}{lrr}&\text { Units }\\\hline \text { Month }& \text { Produced } & \text { Sold } \\\text { August } 2018 & 100,000 & 90,000 \\\text { September } 2018 & 100,000 & 105,000\end{array}$
Net income under absorption costing for August was $40,000; net income under variable costing for September was $50,000. Fixed manufacturing costs were $600,000 for each month.
How much was net income for September using absorption costing?

• A)$50,000
• B)$80,000
• C)$20,000
• D)$40,000

---

Definitions:

Null Hypothesis

A hypothesis that suggests there is no statistical significance in the given set of observations, often denoted as H0 and used as a default hypothesis to be tested.

Significance Level

A threshold chosen by the researcher which denotes the probability of rejecting the null hypothesis when it is actually true, often denoted as alpha.

SRS

A simple random sample, which is a subset of a statistical population in which each member of the subset has an equal probability of being chosen.

Significance Test

A statistical procedure for testing a hypothesis to determine if there is enough evidence to reject the null hypothesis.