Octagonal Company Has the Following Information for 2016: Selling Price

question 46

Multiple Choice

Octagonal Company has the following information for 2016: Selling price $150 per unit
Variable production costs $40 per unit produced Variable selling and admin. expenses $16 per unit sold Fixed production costs $200,000
Fixed selling and admin. expenses $140,000 Units produced 10,000 units
Units sold 8,000 units
There were no beginning inventories.
What is the net income for Octagonal using the absorption costing method?

• A) $600,000
• B) $480,000
• C) $1,200,000
• D) $452,000

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Definitions:

Binocular Disparity

The difference in image location of an object seen by the left and right eyes, resulting from the eyes’ horizontal separation, providing a cue for depth perception.

Monocular

Relating to, or involving only one eye.

Ocular

Related to the eye or the sense of sight.

Binocular Cue

Visual information taken in by two eyes that enables perception of depth and distance, adding to the sense of three-dimensionality.