Franz Began Business at the Start of This Year and Had

question 18

Multiple Choice

Franz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $9; fixed manufacturing costs, $60,000; variable selling and administrative costs per unit, $2; and fixed selling and administrative costs, $220,000. The company sells its units for $45 each. Additional data follow. $\begin{array}{lr}\text { Planned production in units } & 10,000 \\\text { Actual production in units } & 10,000 \\\text { Number of units sold } & 8,500\end{array}$ There were no variances.
The income (loss) under absorption costing is:

• A) $(7,500).
• B) $9,000.
• C) $15,000.
• D) $18,000.
• E) None of the other answers are correct.

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Definitions:

Catabolism

The metabolic process that breaks down molecules into smaller units, releasing energy and forming waste products, part of the body's metabolism.

Glycolysis

Glycolysis is a metabolic pathway that breaks down glucose into pyruvate, yielding energy in the form of ATP.

Thiamin

A water-soluble vitamin, also known as Vitamin B1, vital for energy metabolism in the body.

Beriberi

A nutritional deficiency disease caused by a lack of thiamine (vitamin B1) in the diet, affecting the cardiovascular and nervous systems.