Taylor Ltd Just Finished Its Second Year of Operations

question 90

Multiple Choice

Taylor Ltd just finished its second year of operations. In the first year it produced 1,000 units and sold 400. The second year resulted in the same production level, but sales were 1,200 units. The variable costing income statements for both years are shown below: The operating profit for year 1 using absorption costing would be

• A) $6,000
• B) $(9,000)
• C) $(9,800)
• D) $600

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Definitions:

Emotional Outbursts

Sudden and intense expressions of strong emotions, often seen as disproportionate reactions to the situation.

Fine Motor Skills

The ability to make movements using the small muscles in our hands and wrists, important for tasks like writing and buttoning clothes.

Gross Motor Skills

The skills needed to manage the major muscle groups in the body for activities such as walking, running, sitting, and crawling.

Sensorimotor Substage

A stage in Jean Piaget's theory of cognitive development, occurring from birth to approximately age 2, where infants learn through interacting with their environment using their senses and motor actions.