ProTech Began Business at the Start of the Current Year

question 62

Multiple Choice

ProTech began business at the start of the current year. The company planned to produce 40,000 units, and actual production conformed to expectations. Sales totaled 37,000 units at $42 each. Costs incurred were:

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If there were no variances, the company's variable-costing income would be:

• A) $155,000.
• B) $212,000.
• C) $240,500.
• D) $592,000.
• E) None of the answers is correct.

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Definitions:

Good X

A placeholder term often used in economics to represent a generic good or product in theoretical models and discussions.

Good Y

A generic term used in economic models to represent a specific type of product or commodity.

Consumer Price Index

An index that measures changes in the price level of a market basket of consumer goods and services purchased by households, indicative of inflation or deflation.

Quantity Theory

An economic theory that suggests that the amount of money in circulation directly impacts the level of economic activity and the price levels.