Asked by Marianne Claire on Jun 03, 2024
Verified
The net operating income (loss) under absorption costing closest to:
A) ($4,000)
B) $9,000
C) $117,000
D) $72,000
Net Operating Income
The profit a company makes from its core business operations, excluding deductions of interest and taxes.
Operating Loss
A loss incurred when a company's operating expenses exceed its gross profits or revenues, indicating that the core operations are not profitable.
- Determine the operating income by utilizing variable and absorption costing approaches.
Verified Answer
ZK
Zybrea KnightJun 10, 2024
Final Answer :
B
Explanation :
Absorption costing unit product cost: 
Absorption costing income statement: 
Absorption costing income statement: 
Learning Objectives
- Determine the operating income by utilizing variable and absorption costing approaches.
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