Break Even Corp has the following info: 2019 140 Beginning Inventory (in units) Actual Sales (in units) Budgeted production (in units) Budgeted fixed manufacturing costs (in $) Operating Income using Variable Costing (in $) 2016 20 400 500 8,000 $0 2017 30 410 400 8,000 $0 2018 10 390 424 8,190 $0 350 484 8,470 $0 In 2015, budgeted manufacturing costs were $50 per unit ($18 variable and $32 fixed costs). In all years, budgeted fixed manufacturing costs = actual fixed manufacturing costs 17. What is net income (loss) using absorption costing for 2016? a. $(133.33) b. ($200) c. Zero d. $120 e. $(160) 18. What is net income (loss) using absorption costing for 2017? a. $(280) b. ($200) c. zero d. $200 c. $220 19. What would be in change in net income between variance costing and absorption costing if one less unit was produced in 2019 a. Absorption costing net income would be $19.32 greater than variable costing net income b. Absorption costing net income would be $19.25 less than variable costing net income c. Absorption costing net income would be $17.75 greater than variable costing net income d. Absorption costing net income would be $17.50 less than variable costing net income e. Absorption costing net income would be $16.00 greater than variable costing net income Break Even Corp has the following info: 2019 140 Beginning Inventory (in units) Actual Sales (in units) Budgeted production (in units) Budgeted fixed manufacturing costs (in $) Operating Income using Variable Costing (in $) 2016 20 400 500 8,000 $0 2017 30 410 400 8,000 $0 2018 10 390 424 8,190 $0 350 484 8,470 $0 In 2015, budgeted manufacturing costs were $50 per unit ($18 variable and $32 fixed costs). In all years, budgeted fixed manufacturing costs = actual fixed manufacturing costs 17. What is net income (loss) using absorption costing for 2016? a. $(133.33) b. ($200) c. Zero d. $120 e. $(160) 18. What is net income (loss) using absorption costing for 2017? a. $(280) b. ($200) c. zero d. $200 c. $220 19. What would be in change in net income between variance costing and absorption costing if one less unit was produced in 2019 a. Absorption costing net income would be $19.32 greater than variable costing net income b. Absorption costing net income would be $19.25 less than variable costing net income c. Absorption costing net income would be $17.75 greater than variable costing net income d. Absorption costing net income would be $17.50 less than variable costing net income e. Absorption costing net income would be $16.00 greater than variable costing net income
