Anchovy,Inc Production Costs Per Case Total $19,which Consists of $15

question 69

Essay

Anchovy,Inc.,a producer of frozen pizzas,began operations this year.During this year,the company produced 16,000 cases of pizza and sold 15,000.At year-end,the company reported the following income statement using absorption costing:
$$\begin{array} { l l } \text { Sales } ( 15,000 \times \$ 48 ) & \$ 720,000 \\\text { Cost of goods sold } ( 15,000 \times \$ 19 ) & \underline { 285,000} \\\text { Gross margin } & \$ 435,000 \\\text { Selling and administrative } & \underline { 79,000} \\\text { expenses } & \\\text { Net income } & \underline { \underline { \$ 356,000}}\end{array}$$
Production costs per case total $19,which consists of $15.50 in variable production costs and $3.50 in fixed production costs (based on the 16,000 units produced).Eight percent of total selling and administrative expenses are variable.Compute net income under variable costing.

---

Definitions:

Placenta

A vital organ in pregnant mammals that connects the developing fetus to the uterine wall, allowing nutrient uptake, waste elimination, and gas exchange via the mother's blood supply.

Menstruation

The monthly shedding of the uterine lining in females, part of the reproductive cycle.

Prenatal Development

The process of growth and development within the womb from conception until birth, involving various stages of physical, cellular, and organ development.

Environmental Factors

Elements of the surrounding environment that can influence living organisms, including both natural and human-made conditions.