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
