Use the Following Information for Items

question 28

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 1/1/10.Production was 20 units per year in 2010 - 2012.Sales were 20 units in 2010, 16 units in 2011, and 24 units in 2012.
-Income under variable costing for 2011 is

• A)$ 8,000.
• B)$14,000.
• C)$16,000.
• D)$22,000.

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Definitions:

Shallow Level

Pertains to surface-level understanding or processing, which does not involve deep comprehension or engagement with the material.

Deep Level

involves processing that is thorough and focused on the meaning and understanding of information, rather than on surface characteristics.

Ill-defined Problem

A problem lacking clear goals, solution paths, or expected solutions, making it challenging to solve.

Well-defined Problem

A well-defined problem is one with clearly specified goals, solution paths, and criteria for evaluating solutions, making it easier to determine when the problem has been resolved.