Assume the following information for a company that produced and sold 10,000 units during its first year of operations:     Per Unit   Per Year   Selling price   $ 200             Direct materials   $ 85             Direct labor   $ 50             Variable manufacturing overhead   $ 8             Sales commission   $ 8             Fixed manufacturing overhead           $ 300,000       Using variable costing, what is the company’s net operating income?   Multiple Choice   $270,000   $170,000   $190,000   $490,000

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 and sold 10,000 units during its first year of operations:
 

  Per Unit   Per Year  
Selling price   $ 200            
Direct materials   $ 85            
Direct labor   $ 50            
Variable manufacturing overhead   $ 8            
Sales commission   $ 8            
Fixed manufacturing overhead           $ 300,000    
 


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

 

Multiple Choice
  •  

    $270,000

  •  

    $170,000

  •  

    $190,000

  •  

    $490,000

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