Nielson Corp sells its product for 8800 per unit Variable costs per unit are

Nielson corp sells its product for 8800 per unit

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117.Nielson Corp. sells its product for $8,800 per unit. Variable costs per unit are:manufacturing, $4,800, and selling and administrative, $100. Fixed costs are: $24,000manufacturing overhead, and $32,000 selling and administrative. There was nobeginning inventory at 1/1/12. Production was 20 units per year in 2012 –2014. Saleswas 20 units in 2012, 16 units in 2013, and 24 units in 2014.Income under variable costing for 2014 isa.$26,400.b.$31,200.c.$32,800.d.$37,600.Ans: d, LO: 7, Bloom: AP, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Industry/Sector Perspective, AICPA FN: Reporting, AICPA PC:Problem Solving/Decision Making, IMA: ReportingSolution: (24) ($8,800 – $4,800 – $100) – $24,000 – $32,000 = $37,600a118.Nielson Corp. sells its product for $8,800 per unit. Variable costs per unit are:manufacturing, $4,800, and selling and administrative, $100. Fixed costs are: $24,000manufacturing overhead, and $32,000 selling and administrative. There was no beginninginventory at 1/1/12. Production was 20 units per year in 2012 –2014. Sales was 20 units in2012, 16 units in 2013, and 24 units in 2014.For the three years 2012–2014,a119.When production exceeds sales,b.variable and fixed manufacturing overhead costs are deferred until a future periodunder variable costing.a120.When production exceeds sales,FOR INSTRUCTOR USE ONLY19 - 26
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Cost-Volume-Profit Analysis: Additional Issuesa
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