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Use the following to answer questions 6-9: Hopkins Company manufactures a single product. The following data pertain to the company's operations last year: $24 Selling
Use the following to answer questions 6-9: Hopkins Company manufactures a single product. The following data pertain to the company's operations last year: $24 Selling price per unit. Variable costs per unit: Production...... Selling and administration Fixed costs in total: Production...... Selling and administration $8 $2 $48,000 $36,000 At the beginning of the year there were no units in inventory. A total of 12,000 units were produced during the year, and 10,000 units were sold. Question 6 Under marginal costing, the unit product cost is: A. $8.00 B. $10.00 C. $12.00 D. $14.00 Question 7 Under absorption costing, the unit product cost is: A. $8.00 B. $10.00 C. $12.00 D. $15.00 Question 8 The net operating income under marginal costing would be: A. $64,000 B. $60,000 C. $56,000 D. $52,000 Question 9 The net operating income under absorption costing would be: A. the same as the income under marginal costing. B. $8,000 greater than the income under marginal costing. C. $12,000 greater than the income under marginal costing. D. $8,000 less than the income under marginal costing
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