Reference no: EM131211230
Pioneer and Victory operate in the same industry. Pioneer’s sales, variable costs, and fixed costs are $800,000, $560,000, and $80,000, respectively. Victory’s sales, variable costs, and fixed costs are $800,000, $320,000, and $320,000, respectively. If each company experiences an equal increase or decrease in sales, Pioneer’s income will
A : Go up twice as much as Victory’s, but go down only half as much as Victory’s.
B : Go up or down twice as much as Victory’s.
C : Go up or down by the same amount as Victory’s because both companies have equal net income.
D : Go up or down half as much as Victory’s.
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Direct labor hours than those reflected in the standards
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Experiences an equal increase or decrease in sales
: Pioneer and Victory operate in the same industry. Pioneer’s sales, variable costs, and fixed costs are $800,000, $560,000, and $80,000, respectively. Victory’s sales, variable costs, and fixed costs are $800,000, $320,000, and $320,000, respectively...
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What cost flow assumption was used
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