Last Year,Salada Corporation's Variable Costing Net Operating Income Was $97,000

question 133

Multiple Choice

Last year,Salada Corporation's variable costing net operating income was $97,000.Fixed manufacturing overhead costs released from inventory under absorption costing amounted to $14,000.What was the absorption costing net operating income last year?

• A)$14,000
• B)$111,000
• C)$97,000
• D)$83,000

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Definitions:

Accounts Receivable

Represents the money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Supplies

Items used in the operation of a business that are consumed or are not permanent, such as paper, pencils, and cleaning materials.

Net Income

The net income a company achieves following the deduction of all costs, taxes, and expenses from its total earnings.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing the owners' share.