(Appendix 6A) Union Corporation Manufactures and Sells One Product

question 31

Multiple Choice

(Appendix 6A) Union 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 24,000 units and sold 17,000 units. The company's only product is sold for $232 per unit.
-The net operating income for the year under super-variable costing is:

• A) $(256,000)
• B) $(830,000)
• C) $(102,000)
• D) $374,000

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Definitions:

Message

A piece of information or communication conveyed from one person, group, or system to another through various means.

Communication Process Model

A conceptual framework that describes the sequence of steps involved in the successful transmission and reception of a message between communicators.

Noise

in communication refers to any interference that distorts or interrupts the clarity of the message being transmitted between sender and receiver.

Transmission

The process of transferring information, signals, or messages from one place or person to another.