10)

Columbia Corporation produces a single product. The company's variable costing income statement for November appears below:

Columbia Corporation
Income Statement
For the Month ended November 30
Sales ($18 per unit)	$	738,000
Variable expenses:
Variable cost of goods sold		410,000
Variable selling expense		123,000
Total variable expenses		533,000
Contribution margin		205,000
Fixed expenses:
Manufacturing		105,810
Selling and administrative		70,540
Total fixed expenses		176,350
Net operating income	$	28,650

During November, 35,270 units were manufactured and 8,270 units were in beginning inventory. Variable production costs have remained constant on a per unit basis over the past several months.

Under absorption costing, for November the company would report a:

Garrison 16e Rechecks 2018-06-22

Multiple Choice

• A) $70,540 profit

• B) $11,460 loss

• C) $28,650 profit

• D) $11,460 profit