Swola Company Reports the Following Annual Cost Data for Its

question 94

Multiple Choice

Swola Company reports the following annual cost data for its single product. This product is normally sold for $25 per unit. If Swola increases its production to 200,000 units, while sales remain at the current 75,000 unit level, by how much would the company's income increase or decrease under variable costing?

• A) $187,500 increase.
• B) $112,500 increase.
• C) There will be no change in income.
• D) $112,500 decrease.
• E) $187,500 decrease.

---

Definitions:

Structure

The arrangement or organization of constituent parts of a system or object, often determining its function and behavior.

Healthy People 2020

A set of health objectives for the nation to achieve over the first decade of the 21st century, aimed at improving the health of all Americans.

Life Expectancy

The average period that a person may expect to live.

Health Care Costs

The expenses associated with the delivery of health care services, including treatment, medication, and hospitalization.