Sales of telephones have increased dramatically over the last year. in order to take advantage of this increase, mammoth industries plans to expand production of its own model of telephone, while continuing its already very extensive advertising of this product.

which of the following, if true, provides most support for the view that mammoth industries cannot increase its sales of telephones by adopting the plan outlined above?

a) although it sells all of the telephones that it produces, mammoth industries' share of all telephone sales has declined over the last year.
b) mammoth industries' average inventory of telephones awaiting shipment to retailers has declined slightly over the last year.
c) advertising has made the brand name of mammoth industries' telephones widely known, but few consumers know that mammoth industries owns this brand.
d) mammoth industries' telephone is one of three brands of telephone that have together accounted for the bulk of the last year's increase in sales.
e) despite a slight decline in the retail price, sales of mammoth industries' telephones have fallen in the last year.

Exercise 6-2 variable costing income statement; explanation of difference in net operating income [lo6-2] ida sidha karya company is a family-owned company located on the island of bali in indonesia. the company produces a handcrafted balinese musical instrument called a gamelan that is similar to a xylophone. the gamelans are sold for $970. selected data for the company’s operations last year follow: units in beginning inventory 0 units produced 200 units sold 180 units in ending inventory 20 variable costs per unit: direct materials $ 130 direct labor $ 300 variable manufacturing overhead $ 30 variable selling and administrative $ 15 fixed costs: fixed manufacturing overhead $ 63,000 fixed selling and administrative $ 25,000 the absorption costing income statement prepared by the company’s accountant for last year appears below: sales $ 174,600 cost of goods sold 139,500 gross margin 35,100 selling and administrative expense 27,700 net operating income $ 7,400 required: 1. under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. prepare an income statement for last year using variable costing.