Wind Fall,a manufacturer of leaf blowers,began operations this year.During this year,the company produced 10,000 leaf blowers and sold 8,500.At year-end,the company reported the following income statement using absorption costing: Production costs per leaf blower total $20,which consists of $16 in variable production costs and $4 in fixed production costs (based on the 10,000 units produced).Fifteen percent of total selling and administrative expenses are variable.Compute net income under variable costing.
A)$146,500
B)$158,500
C)$237,500
D)$206,500
E)$246,500

Question

Wind Fall,a manufacturer of leaf blowers,began operations this year.During this year,the company produced 10,000 leaf blowers and sold 8,500.At year-end,the company reported the following income statement using absorption costing: Production costs per leaf blower total $20,which consists of $16 in variable production costs and $4 in fixed production costs (based on the 10,000 units produced).Fifteen percent of total selling and administrative expenses are variable.Compute net income under variable costing.
A)$146,500 
B)$158,500 
C)$237,500 
D)$206,500 
E)$246,500

Quizplus · Accepted Answer

The Answer of Wind Fall,a manufacturer of leaf blowers,began operations this year.During this year,the company produced 10,000 leaf blowers and sold 8,500.At year-end,the company reported the following income statement using absorption costing: Production costs per leaf blower total $20,which consists of $16 in variable production costs and $4 in fixed production costs (based on the 10,000 units produced).Fifteen percent of total selling and administrative expenses are variable.Compute net income under variable costing.
A)$146,500 
B)$158,500 
C)$237,500 
D)$206,500 
E)$246,500

Wind Fall,a Manufacturer of Leaf Blowers,began Operations This Year