Sol Enterprises' Contribution Income Statement Utilizing Variable Costing Appears Below

question 31

Multiple Choice

Sol Enterprises' contribution income statement utilizing variable costing appears below: Sol Enterprises
Income Statement
For the Year ended December 31, 2017
$\begin{array}{lr}\text { Sales ( } \$ 12 \text { per unit) }&&\$240,000\\\text { Less variable costs: }\\\text { Cost of goods sold } & \$ 100,000 \\\text { Selling \& administrative costs } & 18,000&118,000\\\text { Contribution margin }&&122,000\\\text { Less fixed costs: }\\\text { Manufacturing overhead } & 60,900 \\\text { Selling \& administrative costs } & 15,000 & 75,900 \\\text { Net income }&&\$48,100\end{array}$ Sol produced 21,000 units during the year.Variable costs per unit and fixed production costs have remained constant the entire year.There were no beginning inventories.How much is the dollar value of the ending inventory using variable costing?

• A)$5,000
• B)$7,900
• C)$8,800
• D)$2,900

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Definitions:

Self-Enhancing Bias

is the tendency to overestimate one's own abilities or attributes and view oneself in an overly favorable light.

Self-Comparison Bias

The tendency to make favorable comparisons between oneself and others, which can lead to an inflated sense of self-esteem or competence.

Global Self-Esteem

Refers to the overall value that one places on oneself as a person, integrating beliefs and feelings from various aspects of self-concept into a single self-assessment.