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:

Learning Styles

The preferred methods or approaches by which individuals learn and absorb information most effectively.

Rank-Order

A method of arranging items in a sequence based on their importance, priority, or some other characteristic.

Problem-Solving Strategies

Techniques or methods applied to identify solutions for complex or challenging issues.

Einstein's Riddle

A logic puzzle attributed to Albert Einstein, challenging solvers to deduce relationships between different sets of clues.