Question
DeAnne Company produces a single product. The company's variable costing income statement for the month of August appears below: Sales $($23 per unit) $933800, variable
DeAnne Company produces a single product. The company's variable costing income statement for the month of August appears below: Sales $($23 per unit) $933800, variable expenses: variable cost of goods sold $609000, variable selling expenses $121800, total variable expenses $730800, contribution margin $203000, fixed expenses fixed manufacturing $142000, fixed selling & administrative $35500, total fixed expenses $177500, net operating income $25500. The company produced 35500 units in August and the beginning inventory consisted of 8670 units. Variable production costs per unit and total fixed costs have remained constant over the past several months. Under absorption costing, for August the company would report a: a) $25500 profit, b) $5100 profit c) $5100 loss d) $35500 profit
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