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:

TR Type Alternator

A specific design of alternators used in automotive applications, known for its efficiency in generating electrical power for the vehicle.

Chassis Electrical System

The network of electrical components and wiring in a vehicle's chassis that powers lights, sensors, and other accessories.

High Compression Engines

Engines designed with a higher compression ratio than standard, increasing efficiency and power output.

Rectifier

An electrical device that converts alternating current (AC) to direct current (DC), used in various power supply applications.