Use This Information for Timmer Corporation to Answer the Questions

question 84

Multiple Choice

Use this information for Timmer Corporation to answer the questions that follow.

Timmer Corporation just started business in January. There were no beginning inventories. During the year, it manufactured 12,000 units of product and sold 10,000 units. The selling price of each unit was $20. Variable manufacturing costs were $4 per unit, and variable selling and administrative costs were $2 per unit. Fixed manufacturing costs were $24,000, and fixed selling and administrative costs were $6,000.

-What would Timmer's net income be for the year using variable costing?

• A) $114,000
• B) $110,000
• C) $4,000
• D) $106,000

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Definitions:

Brain Damage

Injury or destruction of brain cells that impairs brain function, possibly resulting from trauma, disease, or other health conditions.

Prefrontal Cortex

The front part of the frontal lobes of the brain, crucial for complex cognitive behavior, personality expression, decision making, and moderating social behaviour.

Deficits

Situations where a shortfall exists, often referring to financial matters where expenses exceed revenue, but can also apply to other areas such as cognitive deficits in psychology.

Damaged

Refers to items or entities that are impaired, harmed, or rendered less effective.