Mandato Corporation has provided the following data for its two most recent years of operation:    Selling price per unit$50   Manufacturing costs:  Variable manufacturing cost per unit produced:  Direct materials$10Direct labor$6Variable manufacturing overhead$5Fixed manufacturing overhead per year$72,000Selling and administrative expenses:  Variable selling and administrative expense per unit sold$5Fixed selling and administrative expense per year$70,000  Year 1Year 2Units in beginning inventory03,000Units produced during the year9,0008,000Units sold during the year6,0009,000Units in ending inventory3,0002,000 The net operating income (loss) under absorption costing in Year 1 is closest to:

A. $96,000
B. $26,000
C. $2,000
D. $126,000


Answer: B

Business

You might also like to view...

Which of the following is NOT a "big five" personality dimension?

a. Attractiveness. b. Surgency. c. Adjustment. d. Agreeableness.

Business

When selecting a DBMS, the only database model choice available to the DBA is the relational model.

Answer the following statement true (T) or false (F)

Business

As a way to enter foreign markets, ________ refers to selling the right to use some process, trademark, patent, or other right for a fee.

A. direct investment B. joint venture C. exporting D. management contracting E. licensing

Business

Ritz-Carlton is known for its customer service--so much so that it allows employees to spend $2,000 to meet customer needs per incident. Customer service at the Ritz-Carlton is an example of a(n)

A. core product. B. symbolic feature. C. experiential feature. D. personalized product. E. supplemental feature.

Business