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Clay Earth Company sells ceramic pottery at a wholesale price of $5.00 per unit. The variable cost of manufacture is $1.75 per unit. The fixed costs are $5,400 per month. It sold 5,900 units during this month. Calculate Clay Earth's operating income (loss) for this month. A. $24,100 B. ($13,775) OC. $13,775 D. ($5,400)

Clay Earth Company sells ceramic pottery at a wholesale price of $5.00 per unit. The variable cost of manufacture is $1.75 per unit. The fixed costs are $5,400 per month. It sold 5,900 units during this month. Calculate Clay Earth's operating income (loss) for this month. A. $24,100 B. ($13,775) OC. $13,775 D. ($5,400)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Clay Earth Company sells ceramic pottery at a wholesale price of $5.00 per unit. The variable cost of manufacture is $1.75 per unit. The fixed costs are $5,400 per month. It sold 5,900 units during this month. Calculate Clay Earth's operating income (loss) for this month. OA. $24,100 OB. ($13,775) OC. $13,775 D. ($5,400)
Transcribed Image Text:Clay Earth Company sells ceramic pottery at a wholesale price of $5.00 per unit. The variable cost of manufacture is $1.75 per unit. The fixed costs are $5,400 per month. It sold 5,900 units during this month. Calculate Clay Earth's operating income (loss) for this month. OA. $24,100 OB. ($13,775) OC. $13,775 D. ($5,400)
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