Delta,Epilson,and Sigma Companies Three new companies (Delta,Epilson,and Sigma)began operations on January 1 of the current year.Consider the following operating costs that were incurred by these companies during the complete calendar year:

Delta Company Epsilon Company Sigma Company

Production in units 10,000 10,000 10,000

Sales price per unit $10 $10 $10

Fixed production costs $10,000 $20,000 $30,000

Variable production costs $30,000 $20,000 $10,000

Variable SG&A $1/unit $2/unit $3/unit

Fixed SG&A $30,000 $20,000 $10,000

Refer to Delta,Epilson,and Sigma Companies.Based on sales of 7,000 units,which company will report the greater income before income taxes if variable costing is used? A)Delta Company B)Epsilon Company C)Sigma Company D)All of the companies will report the same income.

Question

Delta,Epilson,and Sigma Companies
Three new companies (Delta,Epilson,and Sigma) began operations on January 1 of the current year.Consider the following operating costs that were incurred by these companies during the complete calendar year:

	Delta Company	Epsilon Company	Sigma Company
Production in units	10,000	10,000	10,000
Sales price per unit	$10	$10	$10
Fixed production costs	$10,000	$20,000	$30,000
Variable production costs	$30,000	$20,000	$10,000
Variable SG&A	$1/unit	$2/unit	$3/unit
Fixed SG&A	$30,000	$20,000	$10,000

Refer to Delta,Epilson,and Sigma Companies.Based on sales of 7,000 units,which company will report the greater income before income taxes if variable costing is used? A)Delta Company B)Epsilon Company C)Sigma Company D)All of the companies will report the same income.

Quizplus · Accepted Answer

The Answer of Delta,Epilson,and Sigma Companies Three new companies (Delta,Epilson,and Sigma)began operations on January 1 of the current year.Consider the following operating costs that were incurred by these companies during the complete calendar year:

	Delta Company	Epsilon Company	Sigma Company
Production in units	10,000	10,000	10,000
Sales price per unit	$10	$10	$10
Fixed production costs	$10,000	$20,000	$30,000
Variable production costs	$30,000	$20,000	$10,000
Variable SG&A	$1/unit	$2/unit	$3/unit
Fixed SG&A	$30,000	$20,000	$10,000

Refer to Delta,Epilson,and Sigma Companies.Based on sales of 7,000 units,which company will report the greater income before income taxes if variable costing is used? A)Delta Company B)Epsilon Company C)Sigma Company D)All of the companies will report the same income.

Delta,Epilson,and Sigma Companies Three New Companies (Delta,Epilson,and Sigma)began Operations on January 1 of January