Red and White Company Reported the Following Monthly Data -What Is Red White's Net Income Under Absorption Costing If

question 133

Multiple Choice

Red and White Company reported the following monthly data.
$$\begin{array} { l l } \text { Units produced } & 2,000 \text { units } \\\text { Sales price } & \$ 25 \text { per unit } \\\text { Direct materials } & \$ 1 \text { per unit } \\\text { Direct labor } & \$ 2 \text { per unit } \\\text { Variable overhead } & \$ 3 \text { per unit } \\\text { Fixed overhead } & \$ 8,000 \text { in total }\end{array}$$
-What is Red White's net income under absorption costing if 980 units are sold and operating expenses are $12,000:

• A) $(1,380)
• B) $(2,000)
• C) $2,700
• D) $6,620
• E) $10,620

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Definitions:

Middle Adulthood

A life stage that typically describes individuals aged approximately 40 to 65, often characterized by stability, growth in career, and relationships.

Larger Purpose

Refers to an overarching goal or direction in life that gives actions and decisions a greater sense of meaning and significance.

Formal Operational Stage

A period in Piaget's theory marking the ability of adolescents and adults to think abstractly, logically, and systematically.

Abstractly

Relating to the process of thinking in a way that is not anchored in concrete reality, but involves understanding concepts and ideas that are not physically present.