TBody Inc. produces exercise workout videos for private distribution. They hire fitness professionals, and record all films in rented facilities, which are rented on a temporary basis for each filming engagement. TBody reported the following financial information for last period:
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

TBody Inc. produces exercise workout videos for private distribution. They hire fitness professionals, and record all films in rented facilities, which are rented on a temporary basis for each filming engagement. TBody reported the following financial information for last period:
  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 TBody Inc. produces exercise workout videos for private distribution. They hire fitness professionals, and record all films in rented facilities, which are rented on a temporary basis for each filming engagement. TBody reported the following financial information for last period:
  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)

TBody Inc Produces Exercise Workout Videos for Private Distribution