The Portland Division's Operating Data for the Past Two Years

question 35

Multiple Choice

The Portland Division's operating data for the past two years is as follows:

The Portland Division's margin in Year 2 was 150% of the margin for Year 1.

-The net operating income for Year 1 was:

• A)$192,000
• B)$128,000
• C)$266,667
• D)$208,000

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Definitions:

Product Margins

The difference between the selling price of a product and the cost of goods sold, representing the profit per unit sold.

Activity Cost Pools

Aggregations of individual costs, categorised based on the activities performed within an organization.

Batches

Batches refer to groups or sets of goods produced at one time, used in manufacturing to describe the production process or in inventory to describe how products are managed.

Product Margins

The difference between the selling price of a product and its production costs.