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Slime Company has provided the following data for the third quarter of the most recent year: Sales $500,000 Fixed MOH $55,000 Direct labour $72,500 Fixed selling expenses $46,250 Variable MOH $41,000 Variable Administrative expenses $48,000 Direct materials $51,500 Fixed administrative expenses $44,500 Variable selling expenses $49,750 Assume that direct materials and direct labour are variable costs and that there was no beginning or ending inventories. Suppose the sales for the third quarter (above) was the equivalent of 1,000 units and that the fixed manufacturing and non-manufacturing co valid between the relevant range of 800 and 1,200 units. If Slime company had sold 100 additional units, it would have reported what amour additional operating income?

Slime Company has provided the following data for the third quarter of the most recent year: Sales $500,000 Fixed MOH $55,000 Direct labour $72,500 Fixed selling expenses $46,250 Variable MOH $41,000 Variable Administrative expenses $48,000 Direct materials $51,500 Fixed administrative expenses $44,500 Variable selling expenses $49,750 Assume that direct materials and direct labour are variable costs and that there was no beginning or ending inventories. Suppose the sales for the third quarter (above) was the equivalent of 1,000 units and that the fixed manufacturing and non-manufacturing co valid between the relevant range of 800 and 1,200 units. If Slime company had sold 100 additional units, it would have reported what amour additional operating income?

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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Slime Company has provided the following data for the third quarter of the most recent year: Sales $500,000 Fixed MOH $55,000 Direct labour $72,500 Fixed selling expenses $46,250 $41,000 $48,000 $51,500 $44,500 $49,750 Variable MOH Variable Administrative expenses Direct materials Fixed administrative expenses Variable selling expenses Assume that direct materials and direct labour are variable costs and that there was no beginning or ending inventories. Suppose the sales for the third quarter (above) was the equivalent of 1,000 units and that the fixed manufacturing and non-manufacturing costs were valid between the relevant range of 800 and 1,200 units. If Slime company had sold 100 additional units, it would have reported what amount of additional operating income? a. $50,000 b. $9,150 OC. $23,725 O d. $100,650
Transcribed Image Text:Slime Company has provided the following data for the third quarter of the most recent year: Sales $500,000 Fixed MOH $55,000 Direct labour $72,500 Fixed selling expenses $46,250 $41,000 $48,000 $51,500 $44,500 $49,750 Variable MOH Variable Administrative expenses Direct materials Fixed administrative expenses Variable selling expenses Assume that direct materials and direct labour are variable costs and that there was no beginning or ending inventories. Suppose the sales for the third quarter (above) was the equivalent of 1,000 units and that the fixed manufacturing and non-manufacturing costs were valid between the relevant range of 800 and 1,200 units. If Slime company had sold 100 additional units, it would have reported what amount of additional operating income? a. $50,000 b. $9,150 OC. $23,725 O d. $100,650
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