Gallison Company's Net Profit Under Absorption Costing Was $15 000

question 42

Multiple Choice

Gallison Company's net profit under absorption costing was $15 000 higher than under variable costing. During the year, the company produced 20 000 units for total variable production costs of $80 000. If fixed manufacturing overhead was $40 000, how many units were sold?

• A) 20 000 units
• B) 12 500 units
• C) 10 000 units
• D) 7500 units

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Definitions:

Free Association

A psychoanalytic technique in which a patient says whatever comes to mind without filtering thoughts, aimed at uncovering unconscious thoughts and feelings.

Group Setting

A social context or environment where individuals gather together, often for a specific purpose or activity, influencing interactions and behavior within the group.

Drugs

Substances that alter the physiological or psychological state of an individual, which can include medications, narcotics, and psychoactive compounds.

Repressed

Involuntarily held out of conscious awareness, used particularly to describe memories or impulses that are hidden due to being considered unacceptable.