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Diego Company manufactures one product that is sold for $80 per unit. The following information pertains to the company's first year of operations in which it produced 40,000 units and sold 35,000 units. Variable costs per unit:

Diego Company manufactures one product that is sold for $80 per unit. The following information pertains to the company's first year of operations in which it produced 40,000 units and sold 35,000 units. Variable costs per unit:

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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[The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $80 per unit. The following information pertains to the company's first year of operations in which it produced 40,000 units and sold 35,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labour $24 $ 14 $ 2 $4 Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead $ 800,000 Fixed selling and administrative expenses $ 496,000 4. What is the company's net operating income under variable costing?
Transcribed Image Text:[The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $80 per unit. The following information pertains to the company's first year of operations in which it produced 40,000 units and sold 35,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labour $24 $ 14 $ 2 $4 Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead $ 800,000 Fixed selling and administrative expenses $ 496,000 4. What is the company's net operating income under variable costing?
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