Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 13 Aug 2017 My Price 11.00

Pungent Corporation

 

(Appendix 5A) Pungent Corporation manufactures and sells a spice rack. Shown below are the actual operating results for the first two years of operations:

Year 1 Year 2

Units (spice racks) produced 40,000 40,000
Units (spice racks)sold 37,000 41,000
Absorption costing net
operating income $44,000 $52,000
Variable costing net
operating income $38,000 ????

Pungent's cost structure and selling price were the same for both years. What is Pungent's variable costing net operating income for Year 2? Answer

  a. $48,000
  b. $50,000
  c. $54,000
  d. $56,000

Answers

Maurice Tutor
(5)
Status NEW Posted 13 Aug 2017 09:08 AM My Price 11.00

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