Use the Following Information for Items

question 21

Multiple Choice

Use the following information for items
Green Company sells its product for $11,000 per unit.Variable costs per unit are: manufacturing, $6,000; and selling and administrative, $125.Fixed costs are: $30,000 manufacturing overhead, and $40,000 selling and administrative.There was no beginning inventory at 1/1/18.Production was 20 units per year in 2018-2020.Sales were 20 units in 2018, 16 units in 2019, and 24 units in 2020.
-Income under variable costing for 2020 is

• A)$33,000.
• B)$39,000.
• C)$41,000.
• D)$47,000.

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Definitions:

Good Plan

A strategy or outline of actions designed with clear objectives, achievable goals, and detailed steps for execution that leads to the desired outcome.

Environmental Uncertainty

The extent to which an organization lacks information about its external environment, making future planning challenging.

State Uncertainty

Refers to the unpredictability associated with the conditions or status of a system, environment, or entity in which outcomes are impossible to foresee accurately.

Response Uncertainty

The lack of predictability or assurance about the reactions or outcomes resulting from a decision, action, or situation.