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

question 111

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 variable 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:

Operating Activity

Tasks and transactions related to the core business functions of an organization, such as selling products or services and manufacturing.

Cash Received

The total amount of cash a company collects from its various sources, including operations, financing, and investing activities, during a period.

Indirect Method

A method of computing the net cash provided by operating activities that starts with net income and adjusts it to a cash basis.

Operating Activities

These are the day-to-day actions that are involved in running a business which affect the cash flow but are not investing or financing activities.