Tokless Inc

question 124

Multiple Choice

Tokless Inc. planned and manufactured 400,000 units of its single product in 2019, its first year of operations. Variable manufacturing costs were $50 per unit of production. Planned and fixed manufacturing costs were $800,000. Marketing and administrative costs (all fixed) were $600,000 in 2019. Tokless Inc. sold 195,000 units of product in 2019 at $65 per unit.

Full costing operating income for 2019 is calculated to be:

• A) $1,525,000.
• B) $1,850,000.
• C) $1,935,000.
• D) $2,260,000.
• E) $2,750,000.

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Definitions:

Small-Batch Production

A manufacturing technique that produces goods in small quantities, often tailored to specific customer needs or niches.

Mass Production

The manufacture of large quantities of standardized products, often on assembly lines, enabling economies of scale.

Continuous-Process Technology

Technologies or systems designed for the continuous production of goods, typically in manufacturing.

Automated Chemical Processing

The use of technology and machinery to perform chemical reactions and operations with minimal human intervention, enhancing efficiency and safety.