Evans Company Produces a Single Product

question 89

Multiple Choice

Evans Company produces a single product.During the most recent year,the company had a net operating income of $90,000 using absorption costing and $84,000 using variable costing.The fixed overhead application rate was $6 per unit.There were no beginning inventories.If 22,000 units were produced last year,then sales for last year were:

• A)15,000 units
• B)21,000 units
• C)23,000 units
• D)28,000 units

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Definitions:

Keynesian Policies

Economic strategies based on the ideas of John Maynard Keynes that advocate for government intervention to manage demand and stabilize the economy.

Stagflation

A situation in an economy where inflation is high, economic growth slows, and unemployment remains steadily high.

Price Level

The price level is a measure of the average prices of goods and services in the economy, indicating the purchasing power of money.

Real Output

Measure of economic output adjusted for price changes; refers to the quantity of goods and services produced in an economy.