Answer the Following Question(s) Using the Information Below

question 147

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:

-The following information pertains to Brian Stone Corporation: What is the difference between operating incomes under absorption costing and variable costing?

• A) $750
• B) $7,500
• C) $15,000
• D) $15,750
• E) $30,750

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Definitions:

Ratio

A relationship between two quantities indicating how many times the first number contains the second.

Relationship Between Variables

The way in which two or more variables are associated or interact with each other.

Strength

In statistics, often refers to the magnitude of a relationship between two variables.

Direction

The course along which someone or something moves, or is aimed or pointed, often described as vectors in mathematical contexts.