Swifton Corporation Produces a Single Product

question 212

Multiple Choice

Swifton Corporation produces a single product. Last year, the company had net operating income of $40,000 using variable costing. Beginning and ending inventories were 22,000 and 27,000 units, respectively. If the fixed manufacturing overhead cost was $3 per unit both last year and this year, what was the income using absorption costing?

• A)$15,000
• B)$25,000
• C)$40,000
• D)$55,000

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Definitions:

Customer Benefit Approach

A marketing and sales strategy emphasizing the advantages or value a product or service offers to the customer.

Customer Benefit Approach

A sales strategy focusing on communicating the advantages or positive outcomes that a customer will gain from purchasing a product or service.

Critical Needs

Essential requirements or urgent issues that must be addressed to avoid negative outcomes or to achieve desired goals.

Lengthy Sales Presentation

A comprehensive and detailed presentation by a salesperson meant to inform potential clients about a product or service, often taking a significant amount of time.