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Big Island Coffee Co. produced and sold 120,000 units last year. Per unit revenue and costs were as follows: Revenue Cost of Goods Sold: Direct
Big Island Coffee Co. produced and sold 120,000 units last year. Per unit revenue and costs were as follows: Revenue Cost of Goods Sold: Direct Materials Direct Labour Variable Manufacturing Overhead Fixed Manufacturing Overhead Total Cost of Goods Sold Gross Margin Selling and Administrative Costs: Sales Commissions (10% of sales) A) $460,000 B) $0 C) $ $20.00 3.00 2.00 1.00 Administrative Salaries Total Selling and Administrative Operating Income Fixed manufacturing overhead and administrative salaries are fixed costs. The per unit amounts are based on last year's production. Calculate this year's operating income if the company plans to produce and sell 200,000 units. D) $900,000 $3.50 6.00 $35.00 26.00 $9.00 9.50
Big Island Coffee Co. produced and sold 120,000 units last year. Per unit revenue and costs were as follows: Fixed manufacturing overhead and adminstrative salaries are fixed costs. The per umit amounts are based on last year's production. Calculate this year's operating income if the company plans to produce and sell 200,000 units. A) $460,000 B) 10 C) 5100,000 D) 5900.000Step by Step Solution
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