Sanders Company has the following information for last year:
There were no beginning inventories.
-Refer to Figure 8-5. What is the income for Sanders using the variable costing method?
A) $420,000
B) $480,000
C) $520,000
D) $500,000

Question

Sanders Company has the following information for last year:
  There were no beginning inventories.
-Refer to Figure 8-5. What is the income for Sanders using the variable costing method?
A) $420,000 
B) $480,000 
C) $520,000 
D) $500,000

Quizplus · Accepted Answer

Variable costing only includes variable production costs in product costs. Without the figure, we assume the given income is calculated using this method.

Sanders Company Has the Following Information for Last Year