Franz Began Business at the Start of This Year and Had

question 21

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 variable 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:

Niceties

Polite or pleasant social conventions; the small courtesies extended in social interactions.

Self-Knowledge

An individual's awareness and understanding of their own personality, feelings, motives, and desires.

Shy

A personality trait characterized by feelings of nervousness or discomfort in social situations.

Secretive

Characteristic of being inclined to conceal feelings, intentions, or information from others.