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

question 26

Multiple Choice

(Appendix 5A) Sagon 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 29, 000 units and sold 23, 000 units.The company's only product is sold for $231 per unit. The net operating income for the year under super-variable costing is:

• A)$782, 000
• B)$446, 000
• C)($202, 000)
• D)$296, 000

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Definitions:

Employee Morale

The general perspective, mood, contentment, and assurance experienced by staff in the workplace.

Service Organizations

Businesses that primarily offer intangible products, such as work or expertise, rather than physical goods.

Government Organizations

Entities established by a government to carry out specific functions or services for the public.

Measuring Productivity

The process of determining the efficiency and effectiveness of production or performance, often quantified as output per unit of input.