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{"ops":[{"insert":"Mason Corporation began operations at the beginning of the current year. One of the company\u2019s products, a refrigeration element, sells for $185 per unit. \nVariable costs per unit:\nDirect material...20\nDirect labor.......................37\nManufacturing overhead...48\n\nAnnual fixed costs:\nManufacturing overhead...$600,000 \nSelling and administrative 860,000\n\nProduction and Sales activity:\nProduction (units... 24,000 \nSales (units)...20,000\n\nMason carries its finished-goods inventory at the average unit cost of production and is subject to a 30 percent income tax rate. \n   1. Determine the cost of the December 31 finished-goods inventory.\n  \n    2. Compute Mason\u2019s net income for the current year ended December 31.\n  \n    3. If next year\u2019s production decreases to 23,000 units and general cost behavior patterns do not change, what is the likely effect on:\n  \n    "},{"attributes":{"italic":true},"insert":"a. "},{"insert":"The direct-labor cost of $37 per unit? \n  \n    "},{"attributes":{"italic":true},"insert":"b. "},{"insert":"The fixed manufacturing overhead cost of $600,000? \n  \n    "},{"attributes":{"italic":true},"insert":"c. "},{"insert":"The fixed selling and administrative cost of $860,000? \n  \n    "},{"attributes":{"italic":true},"insert":"d. "},{"insert":"The average unit cost of production? \n      \n  \n\n"}]}

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