Dessa,IncReports the Following Information for the Year Ended December 31

question 210

Multiple Choice

Dessa,Inc.reports the following information for the year ended December 31:

The beginning Finished Goods Inventory costs were $3,600 under absorption costing and $2,700 under variable costing.
What is the operating income using variable costing?

• A)$41,280
• B)$42,500
• C)$11,780
• D)$4,280

Apply cost-volume-profit analysis to make informed operational and strategic decisions.

Understand the significance of fixed costs, variable costs, and sales mix in determining the break-even point and target profit levels.

Interpret changes in selling price, costs, or volume can affect break-even points and ultimately profitability.

Learn how to compute the margin of safety and its implications for business stability.

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