Jarvix Company, Which Has Only One Product, Has Provided the Following

question 70

Multiple Choice

Jarvix Company, which has only one product, has provided the following data concerning its most recent month of operations:
$\begin{array}{l|r|}\hline \text { Selling price } & \$ 111 \\\hline \text { Units in beginning inventory } & 0 \\\hline \text { Units produced } & 8,800 \\\hline \text { Units sold } & 8,900 \\\hline \text { Variable costs per unit: } & \\\hline \text { Direct materials } & \$ 34 \\\hline \text { Direct labour } & \$ 37 \\\hline \text { Variable manufacturing overhead } & \$ 3 \\\hline \text { Variable selling and administrative } & \$ 9 \\\hline \text { Fixed costs: } &\\\hline \text { Fixed manufacturing overhead } & \$ 61,600 \\\hline \text { Fixed selling and administrative } & \$ 169,100 \\\hline\end{array}$ The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.


-What was the operating income for the month under absorption costing?

• A) $2,100.
• B) $17,800.
• C) $18,500.
• D) $25,900.

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Definitions:

Horizontal Communication

The exchange of information and ideas between individuals or groups at the same level within an organization, promoting collaboration and coordination.

Ethnocentrism

The belief in the inherent superiority of one's own ethnic group or culture, often accompanied by a disdain for other cultures.

Sensory Overload

A condition where one or more of the body's senses experiences over-stimulation from the environment, leading to feelings of discomfort or inability to focus.

Attention Economy

An economic model where human attention is treated as a scarce commodity, and businesses compete to capture and hold consumer attention.