Croft Corporation Produces a Single Product

question 280

Multiple Choice

Croft Corporation produces a single product. Last year, the company had a net operating income of $93,800 using absorption costing and $81,600 using variable costing. The fixed manufacturing overhead cost was $10 per unit. There were no beginning inventories. If 28,000 units were produced last year, then sales last year were:

• A) 15,800 units
• B) 26,780 units
• C) 29,220 units
• D) 40,200 units

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Definitions:

Plantar Flexion

The movement of the foot that points the toes downward, away from the leg.

Eversion

The process of turning inside out or being turned inside out.

Hydrotherapy

The use of water in the treatment of different conditions, including arthritis and related rheumatic complaints, through exercises and baths.

Fluidotherapy

A technique for stimulating healing, particularly in the hands and feet, by placing the affected body part in a container of glass beads that are heated and agitated with hot air.