Curtis Corporation Reports Net Income for 2017 of $150,000

question 157

Multiple Choice

Curtis Corporation reports net income for 2017 of $150,000.Curtis Corporation had outstanding for all of 2017: 10,000 shares of non-cumulative,$5,preferred shares and 75,000 common shares.No dividends were declared in 2017.Earnings per share is:

• A) $15.00
• B) $10.00
• C) $1.33
• D) $2.00

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Definitions:

Milling Machine Minutes

These represent the time a milling machine is in operation, often used as a basis for allocating manufacturing overhead costs.

Monthly Demand

The sum amount of a product or service that purchasers are ready and can afford to buy over the course of a month.

Variable Manufacturing Overhead

The portion of manufacturing overhead costs that changes in proportion to the level of production activity.

Fixed Manufacturing Overhead

Costs related to the production that remain constant regardless of the level of manufacturing activity, such as building lease payments or salaries of permanent staff.