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Barnes Corporation has provided the following cost data for last year when 200,000 units were produced and sold: Raw materials..$250,000 Direct labor..$100,000 Manufacturing Overhead.$300,000 Selling
Barnes Corporation has provided the following cost data for last year when 200,000 units were produced and sold:
Raw materials..$250,000
Direct labor..$100,000
Manufacturing Overhead.$300,000
Selling and Admin. Expense....$200,000
All costs are variable except for $170,000 Manufacturing Overhead and $80,000 Selling and Administrative Expense. There are no beginning or ending inventories. If the selling price is $15 per unit, the net operating income from producing and selling 210,000 units would be:
$2,275,000 | ||
$2,270,000 | ||
$2,250,000 | ||
$3,125,000 |
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