Swisher,Incorporated reports the following annual cost data for its single product: This product is normally sold for $48 per unit.If Swisher increases its production to 50,000 units,while sales remain at the current 30,000 unit level,by how much would the company's income increase or decrease under absorption costing?
A)$60,000 decrease.
B)$90,000 decrease.
C)There is no change in income.
D)$90,000 increase.
E)$60,000 increase.

Question

Swisher,Incorporated reports the following annual cost data for its single product:  This product is normally sold for $48 per unit.If Swisher increases its production to 50,000 units,while sales remain at the current 30,000 unit level,by how much would the company's income increase or decrease under absorption costing?
A)$60,000 decrease. 
B)$90,000 decrease. 
C)There is no change in income. 
D)$90,000 increase. 
E)$60,000 increase.

Quizplus · Accepted Answer

The Answer of Swisher,Incorporated reports the following annual cost data for its single product:  This product is normally sold for $48 per unit.If Swisher increases its production to 50,000 units,while sales remain at the current 30,000 unit level,by how much would the company's income increase or decrease under absorption costing?
A)$60,000 decrease. 
B)$90,000 decrease. 
C)There is no change in income. 
D)$90,000 increase. 
E)$60,000 increase.

Swisher,Incorporated Reports the Following Annual Cost Data for Its Single