Atlantic Company Produces a Single Product

question 101

Multiple Choice

Atlantic Company produces a single product. For the most recent year, the company's net operating income computed by the absorption costing method was $7,400, and its net operating income computed by the variable costing method was $10,100. The company's unit product cost was $17 under variable costing and $22 under absorption costing. If the ending inventory consisted of 1,460 units, the beginning inventory must have been:

• A) 920 units
• B) 1,460 units
• C) 2,000 units
• D) 12,700 units

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Definitions:

Metabolism

The set of life-sustaining chemical reactions in organisms to convert food to energy, maintain cellular structure, and eliminate waste products.

Overweight

A condition characterized by having more body fat than is optimally healthy, often defined by a Body Mass Index (BMI) over 25.

Age-Related Condition

Health issues or diseases that become more common as individuals get older, such as arthritis, heart disease, Alzheimer's, and cancer.

Exercise

Exercise is physical activity that is planned, structured, and repetitive for the purpose of conditioning the body.