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:

Endoderm

In early embryonic development, the most internal cell or tissue layer that evolves into the lining of the digestive and respiratory systems.

Metencephalon

Second most posterior division of the embryonic brain; becomes the pons and cerebellum in the adult.

Cerebellum

A major structure of the hindbrain that controls fine motor skills, balance, and coordination.

Myelencephalon

The myelencephalon is a part of the brainstem, primarily responsible for controlling vital functions such as breathing, heart rate, and digestion.