Swola Company Reports the Following Annual Cost Data for Its

question 173

Multiple Choice

Swola Company reports the following annual cost data for its single product. This product is normally sold for $25 per unit.If Swola increases its production to 200,000 units,while sales remain at the current 75,000 unit level,by how much would the company's income increase or decrease under variable costing?

• A)$187,500 increase.
• B)$112,500 increase.
• C)There will be no change in income.
• D)$112,500 decrease.
• E)$187,500 decrease.

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Definitions:

European Nations

Countries located on the continent of Europe, each with its distinct culture, history, and government.

United States

A country located primarily in North America, consisting of 50 states and a federal district, known for its diverse population and large economy.

Fetal Alcohol Syndrome

a disorder that results from alcohol exposure during the mother's pregnancy, causing growth, mental, and physical problems in the child.

Conception

The process of a sperm fertilizing an ovum, leading to the formation of a zygote and the beginning of pregnancy.