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

question 32

Multiple Choice

(Appendix 6A) Marcelin 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 51,000 units and sold 46,000 units. The company's only product is sold for $276 per unit.
-The net operating income for the year under super-variable costing is:

• A) $1,593,000
• B) $1,023,000
• C) $1,978,000
• D) $1,483,000

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including the balance sheet, income statement, and cash flow statement.

External Auditor

An independent party that reviews an organization's financial statements to ensure accuracy and compliance with accounting standards.

Net Income

The total earnings of a company after deducting all expenses, taxes, and losses from total revenue.

Balance Sheet

This details a business's financial condition by listing its assets, debts, and the equity of its shareholders on a specific date.