Use the Following Information for Questions

question 28

Multiple Choice

Use the following information for questions
Nielson Corp. sells its product for $6,600 per unit. Variable costs per unit are: manufacturing, $3,600, and selling and administrative, $75. Fixed costs are: $18,000 manufacturing overhead, and $24,000 selling and administrative. There was no beginning inventory at 1/1/15. Production was 20 units per year in 2015-2017. Sales were 20 units in 2015, 16 units in 2016, and 24 units in 2017.
-Income under absorption costing for 2016 is

• A)$4,800.
• B)$8,400.
• C)$9,600.
• D)$13,200.

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Definitions:

Insights

Deep, intuitive understandings or interpretations derived from analysis or reflection.

Consumer Behavior

The study of how individuals, groups, or organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and desires.

Consumer Application

A software application designed and developed primarily for use by individual consumers, often for personal, non-commercial purposes.

Viability

The capability of being successful or sustainable, often used to assess business models, projects, or initiatives.