Fixed production costs, Production costs per tennis racket

Fixed production costs

Reference no: EM13913953

Aces, Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,000 rackets and sold 4,900. At year-end, the company reported the following income statement using absorption costing. Production costs per tennis racket total $38, which consists of $25 in variable production costs and $13 in fixed production costs (based on the 6,000 units produced). Ten percent of total selling and administrative expenses are variable. Compute net income under variable costing.

A. $194,100

B. $165,500

C.$311,000

D.$240,500

E.$233,000

Reference no: EM13913953

Questions Cloud

Define intellectual property rights : Define intellectual property rights

The first possible investment is the packaging machine : The first possible investment is the packaging machine

Is abc accountant adhering to ethical standard of management : ABC Cosmetics Company's managerial accountant has lunch every day with his friend. Is ABC's accountant adhering to the ethical standards of management accountants? Defend your answer.

What is the speaker''s message, objective, or vision : What is the speaker's message, objective, or vision (if advocating change)? How does the speaker establish his/her credibility?

Fixed production costs : Production costs per tennis racket total $38, which consists of $25 in variable production costs and $13 in fixed production costs (based on the 6,000 units produced). Ten percent of total selling and administrative expenses are variable. Compute net..

Which amounts would be included in his assessable income : Based on this conclusion and discussing the source and derivation of income principles, state which amounts would be included in his assessable income for the year. You do not need to consider the consequences of any Double Tax Agreements

Uncollectible accounts : oung and Old Corporation (YOC) uses two aging categories to estimate uncollectible accounts. Accounts less than 60 days are considered young and have a 3% uncollectible rate. Accounts more than 60 days are considered old and have a 40% uncollectible ..

Assume during the quarter ending december : Assume during the quarter ending December 31 of the current year, MatsonOffice Systems had 13 weekly paydays and three monthly paydays.

Review the five types of customer complainers : Review the five types of customer complainers and the four types of complaints. Then, below describe a time when you did not "complain" - What caused you not to provide this feedback?

User Account

All Pages