(Appendix 5A)Wienecke Corporation Manufactures and Sells One Product

question 24

Multiple Choice

(Appendix 5A) Wienecke Corporation manufactures and sells one product.The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative costs.During its first year of operations, the company produced 44, 000 units and sold 41, 000 units.The company's only product is sold for $239 per unit. Assume that the company uses a variable costing system that assigns $16 of direct labor cost to each unit that is produced.The net operating income under this costing system is:

• A)$856, 000
• B)$544, 000
• C)$808, 000
• D)$1, 066, 000

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Definitions:

Beginning Total Assets

The total value of all assets owned by an entity at the start of a fiscal period, critical for financial analysis and performance tracking.

Ending Total Assets

The total value of a company's assets (such as cash, inventory, property, and investments) at the end of an accounting period.

Profit Margin

A financial metric expressed as a percentage that measures the amount of net income earned with each dollar of sales by comparing net income and net sales.

Net Income

The net income that a company earns, calculated by deducting all expenses and taxes from the total revenue.