Hyper Color Company Manufactures Widgets

question 34

Multiple Choice

Hyper Color Company manufactures widgets. The following data is related to sales and production of the widgets for last year. Using absorption costing, what is operating income for last year? (Round any intermediary calculations to the nearest whole dollar.)

• A)$50,000
• B)$232,000
• C)$216,000
• D)$150,000

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Definitions:

EDC

Often refers to Economic Development Corporations, which are organizations focused on promoting economic growth within a specific geographic area.

Swaps

Financial derivatives where two parties exchange financial instruments or cash flows.

Gilts

Government bonds issued by the United Kingdom, considered low-risk investments since they are backed by the British government.

Unbiased Forward Rates

Interest rates or currency exchange rates that are equal to the expected future spot rates, implying no arbitrage opportunities.