The Heartlake Corporation manufactures and sells toy gyroscopes. The following data is related to sales and production of the toy gyroscopes for last year. Selling price per unit $8.00 Variable manufacturing costs per unit $1.83 Variable selling and administrative expenses per unit $4.55 Fixed manufacturing overhead (in total) $78,000 Fixed selling and administrative expenses (in total) $80,000 Units produced during the year 520,000 Units sold during year 190,000 Using variable costing, what is the operating income for last year? $1,520,000 $149,800 $307,800 $465,800
The Heartlake Corporation manufactures and sells toy gyroscopes. The following data is related to sales and production of the toy gyroscopes for last year. Selling price per unit $8.00 Variable manufacturing costs per unit $1.83 Variable selling and administrative expenses per unit $4.55 Fixed manufacturing overhead (in total) $78,000 Fixed selling and administrative expenses (in total) $80,000 Units produced during the year 520,000 Units sold during year 190,000 Using variable costing, what is the operating income for last year? $1,520,000 $149,800 $307,800 $465,800
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The Heartlake Corporation manufactures and sells toy gyroscopes. The following data is related to sales and production of the toy gyroscopes for last year.
Using variable costing, what is the operating income for last year?
| Selling price per unit | $8.00 |
| Variable |
$1.83 |
| Variable selling and administrative expenses per unit | $4.55 |
| Fixed manufacturing |
$78,000 |
| Fixed selling and administrative expenses (in total) | $80,000 |
| Units produced during the year | 520,000 |
| Units sold during year | 190,000 |
Using variable costing, what is the operating income for last year?
|
$1,520,000
|
||
|
$149,800
|
||
|
$307,800
|
||
|
$465,800
|
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