Union Corporation manufactures and sells one product. The following information pertains to the company's first year of operations: The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 24,000 units and sold 17,000 units. The company's only product is sold for $232 per unit.
The net operating income for the year under super-variable costing is:
A) $(256,000)
B) $(830,000)
C) $(102,000)
D) $374,000

Question

Union Corporation manufactures and sells one product. The following information pertains to the company's first year of operations:  The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 24,000 units and sold 17,000 units. The company's only product is sold for $232 per unit.
The net operating income for the year under super-variable costing is:
A) $(256,000) 
B) $(830,000) 
C) $(102,000) 
D) $374,000

Quizplus · Accepted Answer

Super-variable costing income statement:
 11eacbfc_c88a_5fca_8ffe_a35a49e49aa1_TB7552_00

Union Corporation Manufactures and Sells One Product