Tokless Inc

question 76

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.

Variable 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:

Consistency

The quality of achieving a level of performance which does not vary greatly in quality over time.

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A way of speaking or writing that is clear and brief, using the fewest words necessary without losing meaning.

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Garden Hose

A flexible tube used for conveying water, typically used for gardening and outdoor cleaning tasks.