Anchovy,Inc

question 80

Essay

Anchovy,Inc.,a producer of frozen pizzas,began operations this year.During this year,the company produced 16,000 cases of pizza and sold 15,000.At year-end,the company reported the following income statement using absorption costing:
Production costs per case total $19,which consists of $15.50 in variable production costs and $3.50 in fixed production costs (based on the 16,000 units produced).Eight percent of total selling and administrative expenses are variable.Compute net income under variable costing.

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Definitions:

General Adaptation Syndrome

A model describing the body's short-term and long-term reactions to stress, consisting of three stages: alarm, resistance, and exhaustion.

Resistance Stage

The second stage of the general adaptation syndrome (GAS), in which the body adapts to a stressor.

Exhaustion Stage

The final stage of the general adaptation syndrome (GAS), in which the body’s ability to resist a stressor has been depleted.

Alarm Stage

The initial phase of the stress response, where the body recognizes a threat and prepares to face or flee from it, activating the fight-or-flight response.