Apollo Corporation produces and sells a single product, sewing machines. Selected cost and operating data relating to the product for last year are given below: Apollo Corporation Selling price per unit $180 Units produced during the year 2,000 Units sold during the year 1,800 Variable costs per units: Direct materials, direct labor, and variable manufacturing overhead $45 Variable selling and administrative expenses $20 Fixed costs per year: Fixed manufacturing overhead $100,000 Fixed selling and administrative expenses $70,000 1. Assume the company uses variable costing. What was the company’s total contribution margin last year? a) $160,000 b)$197,000 c)$200,000 d)$207,000 2. Assume the company uses variable costing. What was the company’s net operating income last year? a)$57,000 b)$37,000 c)$27,000 d)$47,000
Apollo Corporation produces and sells a single product, sewing machines. Selected cost and operating data relating to the product for last year are given below: Apollo Corporation Selling price per unit $180 Units produced during the year 2,000 Units sold during the year 1,800 Variable costs per units: Direct materials, direct labor, and variable manufacturing overhead $45 Variable selling and administrative expenses $20 Fixed costs per year: Fixed manufacturing overhead $100,000 Fixed selling and administrative expenses $70,000 1. Assume the company uses variable costing. What was the company’s total contribution margin last year? a) $160,000 b)$197,000 c)$200,000 d)$207,000 2. Assume the company uses variable costing. What was the company’s net operating income last year? a)$57,000 b)$37,000 c)$27,000 d)$47,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Apollo Corporation produces and sells a single product, sewing machines. Selected cost and operating data relating to the product for last year are given below:
|
Apollo Corporation |
|
|
Selling price per unit |
$180 |
|
Units produced during the year |
2,000 |
|
Units sold during the year |
1,800 |
|
Variable costs per units: |
|
|
Direct materials, direct labor, and variable manufacturing |
$45 |
|
Variable selling and administrative expenses |
$20 |
|
Fixed costs per year: |
|
|
Fixed manufacturing overhead |
$100,000 |
|
Fixed selling and administrative expenses |
$70,000 |
1. Assume the company uses variable costing. What was the company’s total contribution margin last year?
a) $160,000
b)$197,000
c)$200,000
d)$207,000
2. Assume the company uses variable costing. What was the company’s net operating income last year?
a)$57,000
b)$37,000
c)$27,000
d)$47,000
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