A Company sold 1,200 units of its product during the current month. The selling price is $50 and the variable cost is $32 per unit. The company's fixed expense totals $9,200 per month. The company's net operating income is: a. $18,400 b. $24,600 c. $12,400 d. $32,000

A Company sold 1,200 units of its product during the current month. The selling price is $50 and the variable cost is $32 per unit. The company's fixed expense totals $9,200 per month. The company's net operating income is: a. $18,400 b. $24,600 c. $12,400 d. $32,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 26E: Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings...

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Question

The companys net operating income is

A Company sold 1,200 units of its product
during the current month. The selling price is
$50 and the variable cost is $32 per unit. The
company's fixed expense totals $9,200 per
month.
The company's net operating income is:
a. $18,400
b. $24,600
c. $12,400
d. $32,000

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