Acustomer wants to tie the amount paid to his broker to the performance of the recommendations made by that broker. the customer says: "for every recommendation that increases in value within 6 months, i will pay you twice the regular commission rate; for every recommendation that goes down in value, i will pay you half of the regular commission rate." this arrangement is:
a. permitted if it is documented in writing
b. permitted if the securities involved are exchange listed
c. prohibited because the commission cannot be based on account performance
d. prohibited because the commission cannot differ for each customer

Lynch company manufactures and sells a single product. the following costs were incurred during the company’s first year of operations: variable costs per unit: manufacturing: direct materials $ 12 direct labor $ 6 variable manufacturing overhead $ 1 variable selling and administrative $ 1 fixed costs per year: fixed manufacturing overhead $ 308,000 fixed selling and administrative $ 218,000 during the year, the company produced 28,000 units and sold 15,000 units. the selling price of the company’s product is $56 per unit. required: 1. assume that the company uses absorption costing: a. compute the unit product cost. b. prepare an income statement for the year. 2. assume that the company uses variable costing: a. compute the unit product cost. b. prepare an income statement for the year.