Swisher,Incorporated Reports the Following Annual Cost Data for Its Single

question 117

Multiple Choice

Swisher,Incorporated reports the following annual cost data for its single product: This product is normally sold for $48 per unit.If Swisher increases its production to 50,000 units,while sales remain at the current 30,000 unit level,by how much would the company's income increase or decrease under absorption costing?

• A)$60,000 decrease.
• B)$90,000 decrease.
• C)There is no change in income.
• D)$90,000 increase.
• E)$60,000 increase.

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Definitions:

Term Deposit

A bank deposit that has a fixed term and typically offers a higher interest rate than savings accounts.

Credit Union

A member-owned financial cooperative that provides traditional banking services.

Simple Interest

Interest calculated only on the principal amount, or the original sum of money borrowed or invested, without considering the effect of compounding over time.

Obligations

Duties or commitments that require an individual or organization to act in a certain manner, often legally binding.