Shark Corporation
the Following Information Pertains to Shark Corporation -Refer to Shark Corporation

question 66

Multiple Choice

Shark Corporation
The following information pertains to Shark Corporation: $$\begin{array} { l l } \text { Beginning inventory } & 0 \text { units } \\\text { Ending Finished Goods Inventory } & 6,000 \text { units } \\\text { Direct labour per unit } & \$ 22 \\\text { Direct materials per unit } & 18 \\\text { Variable manufacturing overhead per unit } & 6 \\\text { Fixed manufacturing overhead per unit } & 12 \\\text { Variable selling costs per unit } & 14 \\\text { Fixed selling costs per unit } & 16\end{array}$$
-Refer to Shark Corporation. What is the relationship between absorption costing net income and variable costing net income?

• A) Absorption costing net income is $72,000 less.
• B) Absorption costing net income is $70,000 less.
• C) Absorption costing net income is $72,000 greater.
• D) Absorption costing net income is $70,000 greater.

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Definitions:

Conscious Interpretation

The mental process of assigning meaning to perceptions, thoughts, or feelings within one's awareness.

Complex Feelings

Emotions that are multifaceted, often involving a mixture of different feelings that are not easily described by basic emotions.

Automatic Processing

A type of cognitive processing that occurs with little effort, conscious thought, or attention, typically because it has become an ingrained skill through repetition.

Two-Factor Theory

A theory suggesting that emotion is based on physiological arousal and cognitive labeling of that arousal.