Reference no: EM132738670

Problem 1: Twin Products Company produces and sells two products. Product M sells for $12 and has variable costs of $6. Product W sells for $15 and has variable costs of $10. Twin predicted sales of 25,000 units of M and 20,000 of W. Fixed costs are $60,000 per month. Assume that Twin achieved its sales goal of $600,000 for September, but fell short of its expected operating income of $190,000. Which of the following descriptions best describes the actual results reported of revenue of $600,000 and operating income of less than $190,000?

a. Twin sold 50,000 of M and no product W.

b. Twin sold more of both products M and W than expected.

c. Twin sold more of product W and less of product M than expected.

d. Twin sold more of product M and less of product W than expected.