QUESTION 7 The Heartlake Corporation manufactures and sells toy gyroscopes. The following data is related...
50.1K
Verified Solution
Link Copied!
Question
Accounting
QUESTION 7
The Heartlake Corporation manufactures and sells toy gyroscopes. The following data is related to sales and production of the toy gyroscopes for last year.
Selling price per unit
$8.20
Variable manufacturing costs per unit
$1.84
Variable selling and administrative expenses per unit
$4.45
Fixed manufacturing overhead (in total)
$79,000
Fixed selling and administrative expenses (in total)
$83,000
Units produced during the year
520,000
Units sold during year
190,000
Using variable costing, what is the contribution margin for last year?
$349,600
$2,753,100
$1,558,000
$362,900
QUESTION 8
How is operating income affected if the number of units sold exceeds the number of units produced?
Operating income would be higher under a variable costing income statement.
Operating income would be higher under an absorption costing income statement.
Operating income would be the same under both a variable costing and absorption costing income statement.
Operating income would be lower under a variable costing income statement.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
