Use the Following Information for Questions

question 7

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 variable costing for 2017 is

• A)$19,800.
• B)$23,400.
• C)$24,600.
• D)$28,200.

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Definitions:

Analysis of Variance

A statistical method used to compare the means of three or more samples to determine if at least one sample mean is significantly different from the others.

Null Hypothesis

A default assumption that there is no significant difference or effect, to be tested against an alternative hypothesis in statistical testing.

Mean Yields

The average outcomes produced or returns obtained from different experiments or investments.

Test Statistic

A measure calculated from sample data to make inferences about a population parameter.