Pecan Co, produced and sold 40.000 units last year, per unit revenue and costs were as shown in the table. Revenue. $100.00 cost of goods sold direct materials $15.00 direct labour. $30.00 variable manufactureing overhead 20.00 fixed manufacturing overhead 10.00 total cost of goods sold 75.00 gross margin. $25.00 selling and Administrative cost sales commissions (10% of sales) fixed manufacturing overheadand administrative salaries are fixed costs. the per unit amounts are based on last year's production. calculate last year's opreating income when the company produced and sold 40.000units. round to the nearest dollar?
Pecan Co, produced and sold 40.000 units last year, per unit revenue and costs were as shown in the table. Revenue. $100.00 cost of goods sold direct materials $15.00 direct labour. $30.00 variable manufactureing overhead 20.00 fixed manufacturing overhead 10.00 total cost of goods sold 75.00 gross margin. $25.00 selling and Administrative cost sales commissions (10% of sales) fixed manufacturing overheadand administrative salaries are fixed costs. the per unit amounts are based on last year's production. calculate last year's opreating income when the company produced and sold 40.000units. round to the nearest dollar?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...
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![Pecan Co, produced and sold 40.000
units last year, per unit revenue and costs
were as shown in the table.
Revenue. $100.00
cost of goods sold
direct materials $15.00
direct labour. $30.00
variable manufactureing overhead 20.00
fixed manufacturing overhead 10.00
total cost of goods sold 75.00
gross margin. $25.00
selling and Administrative cost
sales commissions (10% of sales)
fixed manufacturing overheadand
administrative salaries are fixed costs.
the per unit amounts are based on last
year's production.
calculate last year's opreating income
when the company produced and sold
40.000units. round to the nearest dollar?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F567e5c76-a71a-4e3b-b67f-acaa9766611e%2F1d60e1bd-dcb7-4eaa-9e31-8a3806c7498e%2Fmb4c9me_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Pecan Co, produced and sold 40.000
units last year, per unit revenue and costs
were as shown in the table.
Revenue. $100.00
cost of goods sold
direct materials $15.00
direct labour. $30.00
variable manufactureing overhead 20.00
fixed manufacturing overhead 10.00
total cost of goods sold 75.00
gross margin. $25.00
selling and Administrative cost
sales commissions (10% of sales)
fixed manufacturing overheadand
administrative salaries are fixed costs.
the per unit amounts are based on last
year's production.
calculate last year's opreating income
when the company produced and sold
40.000units. round to the nearest dollar?
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