0. Multiple Choice: A manufacturing company that produces... Points. 1 Question

Question

0. Multiple Choice: A manufacturing company that produces... Points. 1 Question A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations Selling price $126 Units in beginning inventory Units produced Units sold Units in ending inventory 3,100 3,000 100 Variable costs per unit $22 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative 543 $3 S10 Fixed costs $89,900 Fixed manufacturing overhead $42,000 Fixed selling and administrative What is the net operating income for the month under variable costing? Answer A $15,000. B. $12,100 C. $2,900.

Explanation / Answer

Calculate net operating income under variable costing :

so answer is b) $12,100

Sales (3000*126) 378000 Variable cost (3000*78) (234000) Contribution margin 144000 Fixed cost (131900) Net operating income 12100

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