Westwood Company Has the Following Information the Current Year:
Eastwood

question 92

Multiple Choice

Westwood Company has the following information the current year:
Eastwood had no beginning inventories.
$\begin{array}{lr}\text { Selling price } & \$ 300 \text { per unit } \\\text { Variable production costs } & \$ 80 \text { per unit produced } \\\text { Variable selling and administrative expenses } & \$ 32 \text { per unit sold } \\\text { Fixed production costs } & \$ 400,000 \\\text { Fixed selling and administrative expenses } & \$ 280,000 \\\text { Units produced } & 20,000 \text { units } \\\text { Units sold } & 16,000 \text { units }\end{array}$
-Refer to the Figure.What is the net income for Westwood using the variable costing method?

• A)$412,000
• B)$480,000
• C)$600,000
• D)$1,200,000

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Definitions:

Management

The process of dealing with or controlling things or people, often within an organizational setting.

Henry L. Gantt

An American mechanical engineer and management consultant who developed the Gantt chart, a popular project management tool.

Human Factor

The consideration of the human element, including psychological, physical, and social aspects, in the design and operation of systems and services.

Service

The action of helping or doing work for someone, often refers to intangible products offered by businesses.