Last Year, Fabre Company Produced 20,000 Units and Sold 18,000

question 110

Multiple Choice

Last year, Fabre Company produced 20,000 units and sold 18,000 units at a price of $12.Costs for last year were as follows: ​
​
Fixed factory overhead is applied based on expected production.Last year, Fabre expected to produce 20,000 units.What is operating income for last year under variable costing?

• A) $111,800
• B) $91,780
• C) $82,200
• D) $78,400
• E) $66,350

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Definitions:

Estimable

Capable of being estimated or approximated in quantity or degree.

Remote Event

An event or condition with a very low chance of occurring, often considered insignificant in financial forecasting and analysis.

Probable Likelihood

This term refers to the high chance of occurrence or expectation that a specific event or outcome will happen.

Liability

Financial obligations or debts that a company or individual owes to others, required to be settled over time.