Richardson Company The Following Information Is Available for Richardson Company for Its

question 56

Multiple Choice

Richardson Company
The following information is available for Richardson Company for its first year of operations:

• A)$30,000
• B)($7,500)
• C)$67,500
• D)cannot be determined from the information given

Sales in units	5,000
Production in units	8,000
Manufacturing costs:
Direct labor	$3 per unit
Direct material	$5 per unit
Variable overhead	$1 per unit
Fixed overhead	$100,000
Net income (absorption method)	$30,000
Sales price per unit	$40

Refer to Richardson Company.If Richardson Company had used variable costing,what amount of income before income taxes would it have reported?

---

Definitions:

Ovarian Follicles

Structures within the ovaries that contain a developing egg and produce hormones involved in reproductive cycles.

Corpus Luteum

A temporary endocrine structure in female ovaries that produces progesterone after ovulation to regulate menstruation and early pregnancy.

FSH

Follicle-stimulating hormone, a hormone released by the pituitary gland that promotes the growth of ovarian follicles in females and the production of sperm in males.

Theca Interna

Layer of cells surrounding the ovarian follicle that produces androgens, which are then converted to estrogen by surrounding granulosa cells.