Given the Scavenger Company Data,what Is Net Income Using Variable

question 115

Multiple Choice

Given the Scavenger Company data,what is net income using variable costing?

• A)$201,250
• B)$181,250
• C)$150,000
• D)$177,600
• E)$276,250

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Definitions:

Interest Rate Sensitive

Pertaining to assets or investments that are affected by changes in interest rates.

Treasury Bills

Short-term government securities with maturities of one year or less, sold at a discount and redeemed at face value at maturity.

Target Cash Balance

The optimal amount of cash that a company aims to hold to meet expected transactions, precautionary, and speculative needs.

Speculative Motive

The intent to hold cash or other assets for the purpose of benefiting from future market movements.