Table Inc. planned and manufactured 250,000 units of its single product in 2010, its first year of operations. Variable manufacturing costs were $30 per unit of production. Planned and actual fixed manufacturing costs were $500,000. Marketing and administrative costs (all fixed) were $300,000 in 2010. Table Inc. sold 200,000 units of product in 2010 at $50 per unit. Variable costing operating income for 2010 is calculated to be: a. $1,000,000 b. $3,200,000 c. $3,300,000 d. $4,200,000

Managerial Accounting: The Cornerstone of Business Decision-Making
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ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
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Table Inc. planned and manufactured 250,000 units of
its single product in 2010, its first year of operations.
Variable manufacturing costs were $30 per unit of
production. Planned and actual fixed manufacturing
costs were $500,000. Marketing and administrative
costs (all fixed) were $300,000 in 2010. Table Inc. sold
200,000 units of product in 2010 at $50 per unit.
Variable costing operating income for 2010 is
calculated to be:
a. $1,000,000
b. $3,200,000
c. $3,300,000
d. $4,200,000
Transcribed Image Text:Table Inc. planned and manufactured 250,000 units of its single product in 2010, its first year of operations. Variable manufacturing costs were $30 per unit of production. Planned and actual fixed manufacturing costs were $500,000. Marketing and administrative costs (all fixed) were $300,000 in 2010. Table Inc. sold 200,000 units of product in 2010 at $50 per unit. Variable costing operating income for 2010 is calculated to be: a. $1,000,000 b. $3,200,000 c. $3,300,000 d. $4,200,000
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