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I dont very confused on 8,9, and 10. please help 8. Net income computed under full costing will be: a higher than net income under
I dont very confused on 8,9, and 10. please help
8. Net income computed under full costing will be: a higher than net income under variable casting when production exceeds sales b. Higher than net income under variable costing in all cases c. Lower than net income under variable costing in all cases d. Lower than net income under variable costing when production exceeds sales. 9. Rosetone Retail sells one product with a variable cost of $3.90 per unit. The demand at different prices to be charged is shown below: Units Demanded 9,800 14,800 19 800 24,800 Unit Price $8.90 $7.90 $6.90 $5.90 If fixed costs are $42,000, what price should Rosetone charge in order to maximize profits? a. $8.90 b. $7.90 c. $6.90 d. $5.90 10. Which of the following statements is true of fixed costs of production in determining whether to accept or reject a special order? a. They are increased in proportion to the amount that production increases when a special order is accepted. b. They are relevant if additional fixed costs will be required to complete the special order. c. If the order can be completed without creating additional fixed costs, they are relevant. d. They are never relevant in the decisionStep by Step Solution
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