Whittenton Corporation manufactures numerous products, one of which is called Tau14. The company has provided the following data about this product: Unit sales (a) 50,000 Selling price per unit$83.00 Variable cost per unit$59.00 Traceable fixed expense$1,100,000 ?What is the net operating income for product Tau14 at the current price?
A. $1,200,000
B. $3,050,000
C. $100,000
D. $4,150,000
Answer: C
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Which one of the following is not a procedure in the approval of a specific invoice for payment?
a. The purchase requisition, purchase order, receiving report, and invoice are compared. b. The extensions and footings on the invoice are verified. c. An employee verifies that all of the approval activities have been completed before a check is prepared. d. The purchasing department prepares a voucher to request payment.
An experience curve:
a. captures the per-unit cost declines in production every time the company's accumulated manufacturing volume doubles b. creates cost savings arise from the combined effects of learning, volume, and specialization c. a and b d. indicates professional development growth of employees e. none of the above
People below the age of majority are considered minors
Indicate whether the statement is true or false
An asset created by prepayment of an insurance premium is:
A. Recorded as a debit to Prepaid Insurance. B. Recorded as a debit to Unearned Revenue. C. Not recorded in the accounting records until the insurance period expires. D. Recorded as a credit to Prepaid Insurance. E. Recorded as a credit to Unearned Revenue.