Absorption-costing income statement

Reference no: EM13128576

Smith, which began business at the start of the current year, had the following data:

Planned and actual production: 40,000 units
Sales: 37,000 units at $15 per unit
Production costs:
Variable: $4 per unit
Fixed: $260,000
Selling and administrative costs:
Variable: $1 per unit
Fixed: $32,000

The gross margin that the company would disclose on an absorption-costing income statement is:

A. $97,500.

B. $147,000.

C. $166,500.

D. $370,000.

E. some other amount.

Reference no: EM13128576

Questions Cloud

To an athlete dying young : What essential elements of the Modernism period are found in Alfred Edward Housman's poem "To An Athlete Dying Young"? How does "To An Athlete Dying Young" relate to the Modernism period?

Monthly net operating income or loss : If the president is right, what will be the effect on the company's monthly net operating income or loss? Using the incremental approach in perparing the answer?

Define a solvent for an industrial process : A solvent for an industrial process requires the use of phenol or benzene. Both are about the same in effectiveness for the process, and of course, gloves will be used when handling either solvent

Find linear correlation coefficient temperature and chirps : Find the least-squares regression line to predict chirps per second based on temperature. increase in temperature. Predict the chirps per second if it is 83.3 degrees.

Absorption-costing income statement : The gross margin that the company would disclose on an absorption-costing income statement is:

Determining derivative of function : Let f be the function whose graph goes through point (3,6) and whose derivative is given by f'(x) = (1+e^(x))/(x^2). Write the equation of the line tangent to the graph of f at x=3 and use it to approximate f(3.1)

What do understand by the empirical formula : What do understand by the terms a) Empirical Formula b) isomerism and what conclusions can you draw from the following observations about the chemical nature of the organic liquid D?

Is there a reason a firm choose one method over another : Non-Controlling interest in a selling subsidiary affects only the allocation of the eliminated unrealized gain or loss and not the amount eliminated?

Unit of the company inventory : Under variable costing, each unit of the company's inventory would be carried at:

User Account

All Pages