Question

Gel Shell makes gel nail polish, which they sell for $ \$ 18 / $ bottle. Gel Shell has the following costs Gel Shell's Costs \begin{tabular}{|l|l|} \hline \multicolumn{1}{|c|}{ Type of Cost } & \multicolumn{1}{c|}{ Amount } \\ \hline Direct Materials & $ \$ 2 / $ unit \\ \hline Direct Labor & $ \$ 3 / $ unit \\ \hline Variable Overhead & $ \$ 4 / $ unit \\ \hline Fixed Overhead & $ \$ 800,000 / $ year \\ \hline \begin{tabular}{l} Variable sales and \\ administrative \end{tabular} & $ \$ 1 / $ unit \\ \hline Fixed sales and administrative & $ \$ 80,000 / $ year \\ \hline \end{tabular} In the current year, Gel Shell produced 160,000 bottles of nail polish and sold $ \$ 170,000 $ bottles of nail polish. The ended the year with 30,000 unsold bottles of nail polish. What is Gel Shell's Net Income under variable costing? 480,000 270,000 430,000 420,000

          Gel Shell makes gel nail polish, which they sell for \( \$ 18 / \) bottle. Gel Shell has the following costs
Gel Shell's Costs
\begin{tabular}{|l|l|}
\hline \multicolumn{1}{|c|}{ Type of Cost } & \multicolumn{1}{c|}{ Amount } \\
\hline Direct Materials & \( \$ 2 / \) unit \\
\hline Direct Labor & \( \$ 3 / \) unit \\
\hline Variable Overhead & \( \$ 4 / \) unit \\
\hline Fixed Overhead & \( \$ 800,000 / \) year \\
\hline \begin{tabular}{l} 
Variable sales and \\
administrative
\end{tabular} & \( \$ 1 / \) unit \\
\hline Fixed sales and administrative & \( \$ 80,000 / \) year \\
\hline
\end{tabular}

In the current year, Gel Shell produced 160,000 bottles of nail polish and sold \( \$ 170,000 \) bottles of nail polish. The ended the year with 30,000 unsold bottles of nail polish.

What is Gel Shell's Net Income under variable costing?
480,000
270,000
430,000
420,000

Gel Shell makes gel nail polish, which they sell for $ 18 / bottle. Gel Shell has the following costs
Gel Shell's Costs

1|c| Type of Cost 1c| Amount

Direct Materials $ 2 / unit

Direct Labor $ 3 / unit

Variable Overhead $ 4 / unit

Fixed Overhead $ 800,000 / year

Variable sales and

administrative
$ 1 / unit

Fixed sales and administrative $ 80,000 / year

In the current year, Gel Shell produced 160,000 bottles of nail polish and sold $ 170,000 bottles of nail polish. The ended the year with 30,000 unsold bottles of nail polish.

What is Gel Shell's Net Income under variable costing?
480,000
270,000
430,000
420,000

Added by Steven S.

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