Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Per Unit Per Year Selling price $ 200 Direct materials $ 76 Direct labor $ 50 Variable manufacturing overhead $ 9 Sales commission $ 8 Fixed manufacturing overhead $ 300,000 Using variable costing, what is the company’s net operating income? Multiple Choice $203,000 $293,000 $193,000 $213,000

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations:
 

  Per Unit   Per Year  
Selling price   $ 200            
Direct materials   $ 76            
Direct labor   $ 50            
Variable manufacturing overhead   $ 9            
Sales commission   $ 8            
Fixed manufacturing overhead           $ 300,000    
 


Using variable costing, what is the company’s net operating income?

 

Multiple Choice
  •  

    $203,000

  •  

    $293,000

  •  

    $193,000

  •  

    $213,000

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