Chino Began Business at the Start of the Current Year

question 30

Multiple Choice

Chino began business at the start of the current year.The company planned to produce 25,000 units,and actual production conformed to expectations.Sales totaled 22,000 units at $30 each.Costs incurred were:
If there were no variances,the company's absorption-costing income would be:

• A)$190,000.
• B)$202,000.
• C)$208,000.
• D)$220,000.
• E)some other amount.

---

Definitions:

Binding Minimum Wage

This is a minimum wage set above the equilibrium wage rate, leading to a surplus of labor supply and a shortage of jobs at that wage level.

Workers

Individuals who perform tasks or provide services in exchange for compensation.

Golf Clubs

Equipment used in the sport of golf, consisting of various types of clubs designed for specific shots.

Higher Price

A situation where the cost of a good or service increases, often due to factors like inflation, increased demand, or higher production costs.