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Current Attempt in Progress The Colin Division of Cullumber Company sells its product for $35 per unit Variable costs per unit include: manufacturing. $14; and selling and administrative, 54. Fixed costs are: $280000 manufacturing overhead, and $58000 selling and administrative. There was no beginning inventory. Expected sales for next year are 40000 units. Gary King, the manager of the Colin Division, is under pressure to improve the performance of the Division. As part of the planning process, he has to decide whether to produce 40000 units or 58000 units next year. What would the net income be under variable costing for each alternative? 40000 units seits $342000 $342000 $342000 $398000 $342000 $409600 $520000 $342000 View Policies Current Attempt in Progress Which of the following is not a potential advantage of variable costing relative to absorption costing? Net Income calculated under variable costing is not closely tied to changes in sales levels. The use of variable costing is consistent with cost-volume-profit analysis. It is easier to understand the impact of fixed and variable costs on the computation of net income when variable costing is used Net income calculated under variable costing is unaffected by changes in production levels. Soforte Attempts: 0 of 1 used Submit

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