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Chairry's is a direct marketer of popular music. The following information about its revenue and cost structure is available: Selling Price $13.00 per CD Variable
Chairry's is a direct marketer of popular music. The following information about its revenue and cost structure is available:
Selling Price | $13.00 per CD |
Variable Costs: | |
Production | $ 3.00 per CD |
Selling and Administration | $ 1.00 per CD |
Fixed Costs: | |
Production | $1,000,000 per year |
Selling and Administration | $3,000,000 per year |
Assume that 500,000 CDs are produced and 450,000 are sold in 2008. What is income under Full Costing?
A $50,000 B $500,000 C $150,000 D $1,850,000
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