Tim's Tools, a Manufacturer of Cordless Drills, Began Operations This

question 168

Multiple Choice

Tim's Tools, a manufacturer of cordless drills, began operations this year. During this year, the company produced 20,000 units and sold 18,000 units. At year-end, the company reported the following income statement using absorption costing: Production costs per unit total $14, which consists of $12.90 in variable production costs and $1.10 in fixed production costs (based on the 20,000 units produced) . 60% of total selling and administrative expenses are variable. Compute net income under variable costing.

• A) $307,800
• B) $198,000
• C) $195,800
• D) $288,000
• E) $220,000

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Definitions:

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for action and stress, triggering the "fight or flight" response.

Digestion

The process by which the body breaks down food into smaller components, ultimately to be absorbed into the bloodstream for nutrition.

Pupil Dilation

The expansion of the pupil, influenced by light exposure, emotional states, and arousal levels.

Nervous System

The complex network of nerves and cells that transmits signals between different parts of the body.