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Franz Began Business at the Start of This Year and Had

question 51

Multiple Choice

Franz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $9; fixed manufacturing costs, $60,000; variable selling and administrative costs per unit, $2; and fixed selling and administrative costs, $220,000. The company sells its units for $45 each. There were no variances. Planned and actual production was 10,000 units. Sales were 8,500 units. The net income (loss) under variable costing is:

Recognize the significance of realistic goal setting in entrepreneurship and management.

Differentiate between the roles and objectives of different managerial levels within an organization.

Grasp the concept of prioritizing objectives and the A-B-C priority system.

Understand the elements and importance of a mission statement in organizational planning.

Definitions:

Innovation Process

An approach that involves transforming novel ideas into useful products, services, or processes to create value or improve solutions.

Nonprogrammed Decisions

Decisions made in response to unusual, unpredictable, and unique situations requiring novel approaches.

Five-step Model

A structured approach or framework divided into five sequential steps to accomplish a task or solve a problem.

Programmed Decision-making

Decision-making methods that follow established processes or rules, often for routine or repetitive decisions.