Question

Given Advanced Company's data, and the knowledge that the product is sold for $62 per unit and operating expenses are $260,000, compute the net income under variable costing.

a) $97,400
b) $105,600
c) $115,600
d) $125,400

Answer 1

Due to the lack of necessary data such as the number of units sold or the variable cost per unit, it is not possible to accurately calculate the net income under variable costing for Advanced Company.

Step-by-step explanation:

To compute the net income under variable costing for Advanced Company, we need to use the information provided. Since the product is sold for $62 per unit, we must calculate the variable costs and subtract them from the total sales revenue. After this, we will subtract the operating expenses to find the net income.

Unfortunately, the core question is missing vital data such as the number of units sold or variable cost per unit, which are essential to accurately calculate the net income under variable costing. Without this information, it is not possible to determine which of the provided options (a) $97,400, (b) $105,600, (c) $115,600, or (d) $125,400 is the correct answer to the student's query.

To correctly compute the net income, we would need the following formula: Net Income = (Selling price per unit - Variable cost per unit) * Number of units sold - Fixed costs (Operating expenses). As we do not have all the necessary figures, we cannot proceed with the calculation.