S&P Enterprises sold 10,000 units of inventory during a given period. The level of inventor of the manufactured product remained unchanged. The manufacturing costs were as follo" Variable Fixed $11.00 $7.00 3.00 2.50 Unit manufacturing costs of the period Unit operating expenses of the period Which of the following statements is true? a. Net income will be the same under both variable and absorption costing. b. The difference in net income cannot be determined. d. Net income under variable costing will be $45,000 less than net income under absorption costing.
S&P Enterprises sold 10,000 units of inventory during a given period. The level of inventor of the manufactured product remained unchanged. The manufacturing costs were as follo" Variable Fixed $11.00 $7.00 3.00 2.50 Unit manufacturing costs of the period Unit operating expenses of the period Which of the following statements is true? a. Net income will be the same under both variable and absorption costing. b. The difference in net income cannot be determined. d. Net income under variable costing will be $45,000 less than net income under absorption costing.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 28P: The following information pertains to Vladamir, Inc., for last year: There are no work-in-process...
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Transcribed Image Text:S&P Enterprises sold 10,000 units of inventory during a given period. The level of inventory
of the manufactured product remained unchanged. The manufacturing costs were as follows:
Variable Fixed
$11.00 $7.00
3.00
2.50
Unit manufacturing costs of the period
Unit operating expenses of the period
Which of the following statements is true?
a. Net income will be the same under both variable and absorption costing.
b. The difference in net income cannot be determined.
d. Net income under variable costing will be $45,000 less than net income under absorption costing.
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