Laguna Company Had a Net Income of £25,000 Using Variable

question 41

Multiple Choice

Laguna Company had a net income of £25,000 using variable costing and a net income of £34,600 using absorption costing. The product cost using variable costing was £10.20 and using absorption costing was £15. If 10,000 units were sold, how many units were produced during?

• A)2,000
• B)8,000
• C)12,000
• D)4,800

Understand the implications of short-term vs. long-term financing decisions for working capital.

Calculate the effective interest rate on loans and understand its impact on financing decisions.

Understand the role of working capital in the operational efficiency of a business.

Identify the types of short-term financing and their appropriate applications.

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Definitions:

Alternative Hypothesis

The hypothesis that there is a significant difference between groups or conditions, as opposed to the null hypothesis.

Contingency Table

A contingency table is a type of table in a matrix format that displays the frequency distribution of the variables.

Contingency Tables

A type of table in a matrix format that displays the frequency distribution of the variables.

Qualitative Variables

Variables that express categorical, non-numeric information, such as gender, race, or type of living arrangement.