Question

Hyper Color Company manufactures widgets. The following data is related to sales and production of the widgets for last year. Selling price per unit $ 170 Variable manufacturing costs per unit $ 62 Variable selling and administrative expenses per unit $ 6 Fixed manufacturing overhead​ (in total) $ 32 comma 000 Fixed selling and administrative expenses​ (in total) $ 6 comma 000 Units produced during the year 1 comma 600 Units sold during year 1 comma 200 Using variable​ costing, what is the operating income for last​ year?

Answer 1

Answer:

Net operating income= $84,400

Explanation:

Giving the following information:

Selling price per unit $ 170

Variable manufacturing costs per unit $62

Variable selling and administrative expenses per unit $6

Fixed manufacturing overhead​ (in total) $32,000

Fixed selling and administrative expenses​ (in total) $6,000

Units produced during the year 1,600

Units sold during year 1,200

Income statement:

Sales= 170*1,200= $204,000

Variable costs= 62*1,200= (74,400)

Contribution margin= 129,600

Variable selling and administrative= (6*1,200)= (7,200)

Fixed manufacturing overhead= (32,000)

Fixed selling and administrative expenses= (6,000)

Net operating income= $84,400