(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:

Gasoline

A volatile, flammable liquid derived from petroleum, commonly used as fuel for engines.

Rate Of Pay

the amount of money that is given in exchange for work performed, typically expressed per time period worked (e.g., hourly, monthly).

Hour

An hour is a unit of time equal to 60 minutes, commonly used to measure the duration of events or the length of shifts in various contexts.

Earned

Income received for work performed or investments. It can refer to wages, salaries, or other forms of income.