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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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