Kekiwi Corporation Manufactures and Sells a Single Product

question 185

Multiple Choice

Kekiwi Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 6,900 units, but its actual level of activity was 6,910 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for January:
Data used in budgeting:
Actual results for January:

-The net operating income in the flexible budget for January would be closest to:

• A) $32,823
• B) $40,902
• C) $32,670
• D) $40,784

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Definitions:

Fetal Alcohol Effect

A condition resulting from alcohol exposure during the mother's pregnancy, causing brain damage and growth problems in the child.

Diethylstilbestrol

A synthetic estrogen that was formerly prescribed to prevent miscarriages and other pregnancy complications before its connection to serious health risks in offspring was discovered.

Teratogens

Substances or elements that lead to fetal or embryonic developmental issues or congenital anomalies.

Blastocyst

A blastocyst is an early stage in the development of an embryo, consisting of a sphere of cells surrounding a fluid-filled cavity and the cluster of cells from which the embryo will develop.