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Wind Fall,a Manufacturer of Leaf Blowers,began Operations This Year Production Costs Per Leaf Blower Total $20,which Consists of $16

question 74

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Wind Fall,a manufacturer of leaf blowers,began operations this year.During this year,the company produced 10,000 leaf blowers and sold 8,500.At year-end the company reported the following income statement using absorption costing:
 Sales (8,500×$45) $382,500 Cost of goods sold (8,500×$20) 170,000 Gross margin $212,500 Selling and administrative expenses 60,000 Net income $152,500\begin{array}{lr}\text { Sales }(8,500 \times \$ 45) & \$ 382,500 \\\text { Cost of goods sold }(8,500 \times \$ 20) & \underline{170,000} \\\text { Gross margin } & \$ 212,500 \\\text { Selling and administrative expenses } & \underline{60,000} \\\text { Net income } & \underline{ \$ 152,500}\end{array}

Production costs per leaf blower total $20,which consists of $16 in variable production costs and $4 in fixed production costs (based on the 10,000 units produced) .Fifteen percent of total selling and administrative expenses are variable.
Compute net income under variable costing.

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Definitions:

Cross-sectional Study

An observational study that analyzes data from a population, or a representative subset, at a specific point in time to examine the presence of disease or other variables.

Health Outcomes

The results of medical conditions and/or health interventions on individuals, including changes in health status, quality of life, and mortality.

Variables Of Interest

Specific items that researchers seek to measure or observe within a study to understand patterns or associations.

Ecologic Fallacy

The error in reasoning that occurs when conclusions about individual-level processes are drawn from group-level data.

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