Lockhart Products Produces a Single Product Lockhart Had No Units in Beginning Inventory

question 75

Multiple Choice

Lockhart Products produces a single product.During 2009 the company incurred the following costs:
$\begin{array}{lr} \text { Variable product costs } & \text {\( \$ 8.00 \) per unit } \\ \text { Variable period costs } & \text {\( \$ 2.00 \) per unit } \\ \text {Total fixed product costs } &\$21000\\ \text { Total fixed period costs } &\$10000\\\end{array}$

Lockhart had no units in beginning inventory.During 2009,6000 units were produced and 5000 units were sold.Which of the following statements is true when comparing net income using absorption versus variable costing?

• A) Net income will be $3500 higher using absorption costing than using variable costing.
• B) Net income will be $3500 lower using absorption costing than using variable costing.
• C) Net income will be $4200 higher using absorption costing than using variable costing.
• D) Net income will be $4200 lower using absorption costing than using variable costing.

Appreciate the various approaches to management including systems theory, the behavioral approach, and the contingency approach.

Comprehend the perspectives on organizations as systems and the importance of adaptability and learning.

Recognize the importance of rigor and science in management practices over quick-fix solutions and best-seller management trends.

Understand the core values and key success factors of companies like the Zildjian Company.

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Definitions:

Past Sales

Past sales refer to the historical record of a product's or company's sales volume over a designated period, used for trend analysis, forecasting, and strategic planning.

Profits_

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Standard Practice

The generally accepted methods or procedures that are adopted by a professional community for consistency and quality.

Net Promoter Index

A metric that gauges the willingness of customers to recommend a company's products or services to others, used as a proxy for customer satisfaction and loyalty.