Last Year,fixed Manufacturing Overhead Costs Were $30,000,variable Production Costs Were

question 135

Multiple Choice

Last year,fixed manufacturing overhead costs were $30,000,variable production costs were $48,000,fixed selling and administration costs were $20,000,and variable selling administrative expenses were $9,600.There was no beginning inventory.During the year,3,000 units were produced and 2,400 units were sold at a price of $40 per unit.Under variable costing,what would be the operating income (loss) ?

• A) $6,000.
• B) $4,000.
• C) ($2,000).
• D) ($4,400).

Discuss the implications of convertible securities and stock options on earnings per share.

Understand the reporting requirements for earnings per share, including the impact of extraordinary items and if-converted method vs. treasury stock method.

Understand the characteristics and definitions of different types of business entities.

Recognize the legal implications and definitions concerning the corporate form of business, including the concept of legal entity status.

---

Definitions:

Services Rendered

Work or services provided by a company or individual to a client or customer.

Paid Cash

A transaction in which goods or services are paid for using physical money or through immediate electronic funds transfer, as opposed to using credit.

Placed on Account

Transactions recorded on credit, affecting accounts payable or receivable without immediate cash exchange.

Debit Balance

A condition where the sum of debits in an account exceeds the sum of credits, indicating an expenditure or asset.