Question 12 The Colin Division of Mochrie Company sells its product for $36 per unit. Variable costs per unit are: manufacturing, $14; and selling and administrative, $3. Fixed costs are: $280000 manufacturing overhead, and $50000 selling and administrative. There was no beginning inventory. Expected sales for next year are 40000 units. Ryan Stiles, the manager of the Colin Division, is under pressure to improve the performance of the Division. As he plans for next year, he has to decide whether to produce 40000 units or 50000 units. What would the net income be under variable costing for each alternative? 40000 units 50000 units $430000 $430000 $430000 $486000 LINK TO TEXT $430000 $486000 $496000 $430000

Question 12 The Colin Division of Mochrie Company sells its product for $36 per unit. Variable costs per unit are: manufacturing, $14; and selling and administrative, $3. Fixed costs are: $280000 manufacturing overhead, and $50000 selling and administrative. There was no beginning inventory. Expected sales for next year are 40000 units. Ryan Stiles, the manager of the Colin Division, is under pressure to improve the performance of the Division. As he plans for next year, he has to decide whether to produce 40000 units or 50000 units. What would the net income be under variable costing for each alternative? 40000 units 50000 units $430000 $430000 $430000 $486000 LINK TO TEXT $430000 $486000 $496000 $430000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6CE

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