What Is Red and White's Net Income Under Variable Costing

question 201

Multiple Choice

What is Red and White's net income under variable costing if 980 units are sold and operating expenses are $12,000?

• A)$(1,380)
• B)$(2,000)
• C)$2,700
• D)$6,620
• E)$10,620

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Definitions:

Organizational Hierarchy

The arrangement of individuals within a corporation according to power, status, and job function, creating a structure of ranks or levels.

Specialization

The process of focusing on and becoming an expert in a particular subject or skill.

Standardization

The process of implementing and developing technical standards to ensure uniformity, compatibility, safety, repeatability, or quality among products, services, or processes.

Centralization

The concentration of decision-making power and authority in the hands of a central body or a few individuals within an organization.