Craft Corporation Produces a Single Product

question 196

Multiple Choice

Craft Corporation produces a single product. Last year, the company had a net operating income of $80,000 using absorption costing and $74,500 using variable costing. The fixed manufacturing overhead cost was $5 per unit. There were no beginning inventories. If 21,500 units were produced last year, then sales last year were:

• A)16,000 units
• B)20,400 units
• C)22,600 units
• D)27,000 units

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Definitions:

Venn Diagram

A diagram that uses circles to represent sets and their relationships to each other, illustrating intersections, unions, and complements among the sets.

Categorical Syllogism

A form of reasoning in which a conclusion is derived from two premises, each of which shares a common or middle term not present in the conclusion.

Venn Diagram

A diagram that uses circles to represent the relationships and intersections among various sets or groups.

Proposition

A statement or assertion that expresses a judgment or opinion which is either true or false.