Treble Inc. planned and manufactured 250,000 units of its single product in 2013
ID: 2507004 • Letter: T
Question
Treble Inc. planned and manufactured 250,000 units of its single product in 2013, its first year of operations. Variable manufacturing costs wer $30 per unit of production. Planned and actual fixed manufacturing costs were $600,000. Martketing and administrative costs (all fixed) were $300,000 in 2013. Treble Inc. sold 200,000 units of product in 2013 at $60 per unit.
Sales for 2013 are calculated to be:
A. 1,000,000
B. 5,000,000
C. 7.500.000
D. 10,000,000
E. 12,000,000
Full costing operating income for 2013 is calculated to be:
A. 4,000,000
B. 4,200,000
C. 5,100,000
D. 5,220,000
E. 5,300,000
Explanation / Answer
Treble Inc. planned and manufactured 250,000 units of its single product in 2013, its first year of operations. Variable manufacturing costs wer $30 per unit of production. Planned and actual fixed manufacturing costs were $600,000. Martketing and administrative costs (all fixed) were $300,000 in 2013. Treble Inc. sold 200,000 units of product in 2013 at $60 per unit.
Sales for 2013 are calculated to be:
E. 12,000,000-correct answer
200,000 x $60 = $12 million
Full costing operating income for 2013 is calculated to be:
A. 4,000,000
B. 4,200,000-correct answer
C. 5,100,000
D. 5,220,000
E. 5,300,000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.