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:

Philanthropy

A humanitarian act or initiative aimed at promoting the welfare of others, often through generous financial donations to causes or organizations.

Marketing Mix

The combination of product, price, place, and promotion strategies used by a company to market its products or services effectively.

Product

An item or service created for sale or use, offering value to customers.

Marketing Mix

An assortment of controllable variables by a company aimed at encouraging customers to buy its offerings, namely product, price, place, and promotion.