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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format thanku
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
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education