Question
A manufacturer has supplied the following data: This content is copyrighted Units produced and sold 10,000 units Sales revenue $924,000 Variable manufacturing expense $297,000 Fixed
-
A manufacturer has supplied the following data: This content is copyrighted
Units produced and sold 10,000 units Sales revenue $924,000 Variable manufacturing expense $297,000 Fixed manufacturing expense $ 280,000 Variable selling and admin. expense $165,000 Fixed selling and admin. expense $82,000 Net operating income (computed from above numbers) $100,000
How much will the sale of one additional unit add to the companys net operating income?
a. $75.90
b. $92.40
c. $34.70
d. $62.70
e. $46.20
A manufacturer has supplied the following data: This content is copyrighted
| Units produced and sold | 10,000 units |
| Sales revenue | $924,000 |
| Variable manufacturing expense | $297,000 |
| Fixed manufacturing expense | $ 280,000 |
| Variable selling and admin. expense | $165,000 |
| Fixed selling and admin. expense | $82,000 |
| Net operating income (computed from above numbers) | $100,000 |
How much will the sale of one additional unit add to the companys net operating income?
| a. | $75.90 | |
| b. | $92.40 | |
| c. | $34.70 | |
| d. | $62.70 | |
| e. | $46.20 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Theory and Corporate Policy
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
4th edition
321127218, 978-0321179548, 321179544, 978-0321127211
