Fixed production costs, Production costs per tennis racket

Fixed production costs

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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

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