Panda, Which Began Business at the Start of 2012, Had

question 16

Multiple Choice

Panda, which began business at the start of 2012, had the following data: Planned and actual production: 100,000 units
Sales: 80,000 units at $20 per unit
Production costs: Variable $6 per unit; Fixed $300,000
Selling and administrative costs: Variable $1 per unit; Fixed $32,000
The gross margin that Panda Company would disclose on its 2012 absorption-costing income statement is:

• A)$0.
• B)$700,000.
• C)$880,000.
• D)$1,300,000.
• E)$1,600,000.

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Definitions:

Group By

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Total Row

A row in a spreadsheet or table that provides the sum, average, count, or other aggregate function of numerical data in selected columns.

Calculate Statistics

A mathematical process of gathering, summarizing, and analyzing data to infer patterns or trends.

Total Row

A row in a table or spreadsheet that calculates and displays the sum or other aggregate function of data in a column or columns.