chapter 5 cost behavior 403910
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(Appendix 5A) Pungent Corporation manufactures and sells a spice rack. Shown below are the actual operating results for the first two years of operations:
Year 1 Year 2
Don't use plagiarized sources. Get Your Custom Essay onchapter 5 cost behavior 403910For $10/Page 0nlyUnits (spice racks) produced 40,000 40,000
Units (spice racks)sold 37,000 41,000
Absorption costing net
operating income $44,000 $52,000
Variable costing net
operating income $38,000 ????Pungent’s cost structure and selling price were the same for both years. What is Pungent’s variable costing net operating income for Year 2? Answer
a. $48,000 b. $50,000 c. $54,000 d. $56,000
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