WebFlicks Is an Online DVD Company That Produces Its Own

question 49

Multiple Choice

WebFlicks is an online DVD company that produces its own DVD copies of first-run movies that it sells for $8.00 each.The following information is available (Assume the same unit costs in all years) : $\begin{array}{ll}\text { Variable costs: }\\\text { Product royalty fees } & \$ 3.30 \text { per DVD } \\\text { DVD production } & \$ 1.20 \text { per DVD } \\\text { Selling and admin costs } & \$ 0.80 \text { per DVD }\\\text { Fixed costs: }\\\text { Production }&\$ 128,000 \text { per month }\\\text { Selling and administration }&\$ 130,000 \text { per month }\\\end{array}$ During June, 160,000 DVDs were produced and 144,000 were sold.There were 17,000 DVDs in beginning inventory.How much is net income per month under full costing?

• A)$143,600
• B)$130,640
• C)$130,800
• D)None of these answer choices are correct.

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Definitions:

Competence Stage

The phase in skill development where an individual has gained sufficient knowledge and ability to perform tasks reliably but not yet effortlessly.

Evaluating Progress

The assessment of how well an individual, group, or project is moving towards its objectives or goals.

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The act of keeping various aspects of life or work in equilibrium, such as work-life balance, financial stability, or emotional well-being.

Raising Bar

The act of increasing standards or expectations in order to achieve higher performance or quality.