Keyser Corporation, which has only one product, has provided the following data
ID: 2437464 • Letter: K
Question
Keyser Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.
What is the net operating income for the month under variable costing?
Selling price $ 133 Units in beginning inventory 950 Units produced 8,850 Units sold 8,950 Units in ending inventory 850Explanation / Answer
Sales 1190350 =8950*133 Variable expenses: Variable cost of goods sold 760750 =8950*(29+46+10) Variable selling and administrative expenses 179000 =8950*20 Total Variable expenses 939750 Contribution margin 250600 Fixed expenses: Fixed manufacturing overhead 70800 Fixed selling and administrative expenses 164200 Total Fixed expenses 235000 Net operatimg income(loss) 15600 Net operating income for the month under variable costing $15600
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