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Use the Following Information for the Next 4 Questions

Question 59

Multiple Choice

Use the following information for the next 4 questions.
Baylor, Inc. just finished its second year of operations. In the first year it produced 1,000 units and sold 400. The second year resulted in the same production level, but sales were 1,200 units. The variable costing income statements for both years are shown below: Use the following information for the next 4 questions. Baylor, Inc. just finished its second year of operations. In the first year it produced 1,000 units and sold 400. The second year resulted in the same production level, but sales were 1,200 units. The variable costing income statements for both years are shown below:   -The operating income for year 2 using absorption costing would be A)  $(9,800)  B)  $600 C)  $(9,000)  D)  $6,000
-The operating income for year 2 using absorption costing would be


A) $(9,800)
B) $600
C) $(9,000)
D) $6,000

Correct Answer:

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