Michelman Corporation Manufactures and Sells One Product

question 18

Multiple Choice

Michelman Corporation manufactures and sells one product.The following information pertains to the company's first year of operations:
The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses.During its first year of operations,the company produced 34,000 units and sold 31,000 units.The company's only product is sold for $254 per unit.
The company is considering using either super-variable costing or an absorption costing system that assigns $28 of direct labor cost and $75 of fixed manufacturing overhead to each unit that is produced.Which of the following statements is true regarding the net operating income in the first year?

• A) Absorption costing net operating income exceeds super-variable costing net operating income by $309,000.
• B) Absorption costing net operating income exceeds super-variable costing net operating income by $225,000.
• C) Super-variable costing net operating income exceeds absorption costing net operating income by $309,000.
• D) Super-variable costing net operating income exceeds absorption costing net operating income by $225,000.

Understand the historical development and evolution of punishment theories, especially in the context of retribution and deterrence.

Learn about the impact of legal and sentencing policies on the implementation of punishment theories.

Understand different theories of punishment and their effectiveness in dealing with criminals.

Recognize rehabilitation as a form of punishment and understand its application.

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Definitions:

Mean-Variance Efficient Portfolio

A portfolio constructed to have the highest possible expected return for a given level of risk.

Covariances

A measure of how two variables move in relation to each other, indicating the degree to which they vary together.

Evolution of Beta

Refers to how the beta value of a security, indicating its volatility relative to the market, changes over time.

Forecast

A prediction or estimate of future events or trends, especially related to economic or weather conditions.