Question 3

Writer One Inc. manufactures ball point pens that sell at wholesale for $0.80 per unit. Budgeted production in both 2018 and 2019 was 16,500 units. There was no beginning inventory in 2018. The following data summarized the 2018 and 2019 operations:

	2018			2019
Units sold		15,000			12,500
Units produced		16,500			13,500
Costs:
Variable factory overhead per unit	$	0.15		$	0.15
Fixed factory overhead	$	3,300		$	2,700
Variable marketing per unit	$	0.30		$	0.30
Fixed Selling and Administrative	$	320		$	320

Full costing operating income for 2018 is calculated to be: (Do not round intermediate calculations. Round your final answers to whole dollar amounts.)

Multiple Choice

• $439.

• $2,150.

• $1,930.

• $2,310.

• $2,460.

Tokless Inc. planned and manufactured 490,000 units of its single product in 2019, its first year of operations. Variable manufacturing costs were $68 per unit of production. Planned and fixed manufacturing costs were $890,000. Marketing and administrative costs (all fixed) were $690,000 in 2019. Tokless Inc. sold 213,000 units of product in 2019 at $83 per unit.

Sales for 2019 are calculated to be:

Multiple Choice

• $14,484,000.

• $17,679,000.

• $14,980,000.

• $15,880,000.

• $33,320,000.