Pungent Corporation Manufactures and Sells a Spice Rack

question 96

Multiple Choice

Pungent Corporation manufactures and sells a spice rack.Shown below are the actual operating results for the first two years of operations: Pungent's selling price and unit variable cost and total fixed cost were the same for both years.What is Pungent's variable costing net operating income for Year 2?

• A)$48,000
• B)$50,000
• C)$54,000
• D)$56,000

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Definitions:

Dissociated

Pertaining to a member who has ended their involvement with or participation in a business entity.

Dissociation

The process by which a member of a partnership or an entity withdraws or is removed from the entity, causing changes in the entity's structure or operations.

Partnership Term

The duration for which a partnership agreement is set to exist, which can be indefinite or fixed, as specified in the partnership agreement.

Partnership Obligations

The duties and responsibilities that partners within a business partnership must fulfill, which may include contributing capital, sharing in profits and losses, and acting in the partnership’s best interest.