Affinity Makes a Single Product, Pool Pumps How Much Is Net Income for the Year Under Variable

question 27

Multiple Choice

Affinity makes a single product, pool pumps.Information for 2017 appears below (Assume the same unit costs in all years) : $$\begin{array} { l r } \text { Sales in units } & 5,800 \\\text { Production in units } & 6,200 \\\text { Beginning inventory } & 1,500 \\\text { Variable production cost per unit } & \$ 46.00 \\\text { Variable selling cost per unit } & \$ 6.00 \\\text { Fixed production cost per year } & \$ 31,000 \\\text { Fixed selling and administrative cost per year } & \$ 24,000 \\\text { Selling price per unit } & \$ 75.00\end{array}$$ How much is net income for the year under variable costing?

• A)$78,400
• B)$87,600
• C)$80,400
• D)None of these answer choices are correct.

---

Definitions:

Effectiveness

The degree to which an action, policy, or method achieves its intended outcome or result.

Predictable Lags

Delays between the implementation of monetary or fiscal policy and the observable effects of such actions on the economy.

Eliminate Inflation

The goal of reducing the rate of increase in the general price level of goods and services to zero.

Passive Policy

A government or central bank policy characterized by minimal intervention in the economy.