Use the Following Information for the Next 4 Questions

question 135

Multiple Choice

Use the following information for the next 4 questions.
Baylor, Inc. just finished its second year of operations. In the first year it produced 1,000 units and sold 400. The second year resulted in the same production level, but sales were 1,200 units. The variable costing income statements for both years are shown below:
-The operating income for year 1 using absorption costing would be

• A) $6,000
• B) $(9,000)
• C) $(9,800)
• D) $600

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Definitions:

Arbitration

A method of dispute resolution where an independent third party reviews the case and makes a decision that can be binding or non-binding.

Conciliation

A method of alternative dispute resolution where an unbiased third party helps disputing parties to reach a voluntary, mutually agreeable resolution.

Mediation

A form of alternative dispute resolution where a neutral third party assists the disputing parties in reaching a mutually acceptable agreement.

Supervisory Position

A role or job that entails overseeing and directing the work of other employees to ensure organizational goals are met.