Use the Following Information for Questions

question 98

Multiple Choice

Use the following information for questions
Nielson Corp. sells its product for $6,600 per unit. Variable costs per unit are: manufacturing, $3,600, and selling and administrative, $75. Fixed costs are: $18,000 manufacturing overhead, and $24,000 selling and administrative. There was no beginning inventory at 1/1/15. Production was 20 units per year in 2018-2020. Sales were 20 units in 2018, 16 units in 2019, and 24 units in 2020.
-Income under variable costing for 2020 is

• A) $19,800.
• B) $23,400.
• C) $24,600.
• D) $28,200.

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Definitions:

Level Scheduling

A technique in production planning aimed at maintaining a steady rate of output, workforce levels, and material usage over time.

Seasonal Demand Fluctuations

Variations in product or service demand corresponding to season or specific time periods.