Answer the Following Question(s) Using the Information Below

question 73

Multiple Choice

Answer the following question(s) using the information below.
Peggy's Pillows produces and sells a decorative pillow for $75.00 per unit. In the first month of operation, 2,000 units were produced and 1,750 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes:

-Helton Company has the following information for the current year: What is the difference between operating incomes under absorption costing and variable costing?

• A) $65,000
• B) $50,000
• C) $40,000
• D) $5,000
• E) $70,000

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Definitions:

Louisiana Purchase

A major land deal in 1803 where the United States bought approximately 827,000 square miles of land west of the Mississippi River from France.

Free People of Color

Individuals of African descent who were not enslaved and lived freely during the period of slavery in the Americas, particularly significant in places like New Orleans.

Jay's Treaty

A 1795 treaty between the United States and Great Britain that sought to settle outstanding issues between the two countries following the American Revolution.

American Alliance

An organization or agreement among the United States and other nations for mutual benefit, particularly in defense or political cooperation.