Moskowitz Corporation has provided the following data for its two most recent years of operation: Selling price per unit$91 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials$13Direct labor$7Variable manufacturing overhead$3Fixed manufacturing overhead per year$480,000Selling and administrative expenses: Variable selling and administrative expense per unit sold$6Fixed selling and administrative expense per year$84,000 Year 1Year 2Units in beginning inventory03,000Units produced during the year12,00010,000Units sold during the year9,00010,000Units in ending inventory3,0003,000The net operating income (loss) under absorption costing in Year 2 is closest to:
A. $224,000
B. $164,000
C. $80,000
D. $56,000
Answer: C
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Answer the following statement true (T) or false (F)
What's the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5%?
A. $4,750 B. $5,000 C. $5,250 D. $5,513 E. $5,788
Answer the following statements true (T) or false (F)
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Reliance Corporation sold 4,000 units of its product at a price of $15 per unit. Total variable cost per unit is $8.50, consisting of $7.75 in variable production cost and $0.75 in variable selling and administrative cost. Compute the contribution margin for the company.
A. $26,000 B. $31,000 C. $34,000 D. $36,900 E. $60,000