Fahey Company Manufactures a Single Product That It Sells For $\$ 25$

question 102

Multiple Choice

Fahey Company manufactures a single product that it sells for $\$ 25$ per unit. The company has the following cost structure:
$\begin{array}{|l|r|}\hline \text { Variable costs per unit: } & \\\hline \text { Manufacturing } & \$ 9 \\\hline \text { Selling and administrative } & \$ 3 \\\hline \text { Fixed costs in total } & \\\hline \text { Manufacturing } & \$ 72,000 \\\hline \text { Selling and administrative } & \$ 54,000 \\\hline\end{array}$
There were no units in beginning inventory. During the year, 18,000 units were produced and 15,000 units were sold.
-What was the company's operating income for the year under variable costing?

• A) $57,000.
• B) $60,000.
• C) $69,000.
• D) $81,000.

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Definitions:

ATP and NADPH

Adenosine triphosphate (ATP) and Nicotinamide adenine dinucleotide phosphate (NADPH) are crucial molecules in cellular energy transfer and photosynthesis, serving as energy currency and reducing power, respectively.

Light-dependent Phase

The first stage of photosynthesis where sunlight is absorbed and used to produce energy carriers ATP and NADPH.

Chemoheterotrophs

Organisms that obtain their energy and carbon from organic compounds, typically by consuming other organisms or organic matter.

Photoautotrophs

Organisms that perform photosynthesis to synthesize nutrients from carbon dioxide and water using sunlight.