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Business, 19.01.2021 19:10, mapoohdoll
Aces, Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,000 rackets and sold 4, 900. At year-end, the company reported the following income statement using absorption costing.
Production costs per tennis racket total $38, which consists of $25 in variable production costs and $13 in fixed production costs (based on the 6,000 units produced). Ten percent of total selling and administrative expenses are variable. Compute net income under variable costing.
a) $165, 500
b) $233,000
c) $311,000
d) $194, 100
e) $240, 500
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Answers: 2
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Aces, Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,000...
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