Workout, Inc. produces exercise workout videos for private distribution. They hire fitness professionals, and record all films in rented facilities. Workout reported the following financial information for last year:
Assume that the fixed costs were the same on a per-unit basis during the prior period.
What would Operating Income be under absorption costing? (round per-unit costs to the nearest cent)

Question

Workout, Inc. produces exercise workout videos for private distribution. They hire fitness professionals, and record all films in rented facilities. Workout reported the following financial information for last year:
  Assume that the fixed costs were the same on a per-unit basis during the prior period.
What would Operating Income be under absorption costing? (round per-unit costs to the nearest cent)

Quizplus · Accepted Answer

The Answer of Workout, Inc. produces exercise workout videos for private distribution. They hire fitness professionals, and record all films in rented facilities. Workout reported the following financial information for last year:
  Assume that the fixed costs were the same on a per-unit basis during the prior period.
What would Operating Income be under absorption costing? (round per-unit costs to the nearest cent)