Use the Following Information for Items

question 17

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 1/1/14.Production was 20 units per year in 2014-2016.Sales were 20 units in 2014, 16 units in 2015, and 24 units in 2016.
-Income under absorption costing for 2016 is

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

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Definitions:

Strategic Fits

The degree to which the strategies and operations of two or more businesses or units complement and reinforce each other.

Acquisitions

The process of obtaining control of another company by purchasing or exchanging shares.

Incremental Value

The additional or extra value generated by making a particular business decision or taking a specific action, compared to not doing so.

Purchase Cost

The total expense incurred to acquire an asset or service, including the price and additional charges.