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Riverton Corp., which began business at the start of the current year, had the following data: Planned and actual production: 40,000 units Sales: 38,000 units
Riverton Corp., which began business at the start of the current year, had the following data:
Planned and actual production: 40,000 units
Sales: 38,000 units at $16 per unit
Production costs:
Variable: $3 per unit
Fixed: $287,000
Selling and administrative costs:
Variable: $2 per unit
Fixed: $39,500
The gross margin that the company would disclose on an absorption-costing income statement is:
(Choose One)
- $221,350.
- $207,000.
- $152,350.
- $418,000.
- None of the answers is correct.
Can you explain this answer and which of the above is correct? Thanks!
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