Titan Industries planned and actually manufactured 300,000 units of its product in 2020. Variable manufacturing costs were $25 per unit. Planned and actual fixed manufacturing costs were $750,000, and marketing and administrative costs totaled $500,000 in 2020. Titan sold 150,000 units of its product at a selling price of $50 per unit. What is Titan's 2020 operating income using variable costing?

Titan Industries planned and actually manufactured 300,000 units of its product in 2020. Variable manufacturing costs were $25 per unit. Planned and actual fixed manufacturing costs were $750,000, and marketing and administrative costs totaled $500,000 in 2020. Titan sold 150,000 units of its product at a selling price of $50 per unit. What is Titan's 2020 operating income using variable costing?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter5: Activity-based Costing And Management

Section: Chapter Questions

Problem 16MCQ: Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000...

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