During Its First Year of Operations, Kima Corp

question 145

Multiple Choice

During its first year of operations, Kima Corp. experienced the following: Units manufactured 70,000
Units sold 60,000
Product costs:
Variable $10.50/unit
Fixed $315,000
Selling and Administrative:
Variable $1.60/unit
Fixed $140,000
The amount of variable costs deducted from revenues under the variable costing approach would be:

• A)$847,000
• B)$831,000
• C)$726,000
• D)$742,000

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Definitions:

Equilibrium

The state in which the concentrations of reactants and products in a reversible chemical reaction are unchanged over time, indicating a balance in the rate of forward and reverse reactions.

Synthetic Route

The planned sequence of chemical reactions used to convert starting materials into desired products in the laboratory or industry.

Reagents

Chemical substances that are employed to bring about a chemical reaction in a provided set of reactants.

Reaction

A process in which substances (reactants) are transformed into different substances (products) through chemical change.