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

question 10

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 company is considering using either super-variable costing or an absorption costing system that assigns $25 of direct labor cost and $56 of fixed manufacturing overhead to each unit that is produced.Which of the following statements is true regarding the net operating income in the first year?

• A)Super-variable costing net operating income exceeds absorption costing net operating income by $486, 000.
• B)Absorption costing net operating income exceeds super-variable costing net operating income by $336, 000.
• C)Absorption costing net operating income exceeds super-variable costing net operating income by $486, 000.
• D)Super-variable costing net operating income exceeds absorption costing net operating income by $336, 000.

Know the definition and role of Multinational Corporations (MNCs).

Identify factors leading to strategy changes in organizations.

Grasp the concept of response strategies to the global environment.

Know important international agreements and organizations affecting global operations.

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Definitions:

HbS Allele

A variant of the hemoglobin gene responsible for sickle-cell disease, offering protection against malaria where prevalent.

Sickle-cell Anemia

A genetic blood disorder characterized by red blood cells that assume an abnormal, rigid, sickle shape.

Heterozygote Advantage

A genetic phenomenon where individuals heterozygous at a particular gene locus have a higher fitness than either of the homozygous forms.

Evolutionary Change

The process through which species undergo modification and diversification over generations due to natural selection, genetic drift, and other mechanisms.