Question
Eagle Corporation manufactures a picnic table. Shown below is Eagle's cost structure: Variable cost per table Total fixed cost for the year Manufacturing cost $90
Eagle Corporation manufactures a picnic table. Shown below is Eagle's cost structure: Variable cost per table Total fixed cost for the year Manufacturing cost $90 $241,960 Selling and administrative $12 $30,508 In its first year of operations, Eagle produced and sold 10,520 tables. The tables sold for $153 each. How would Eagle's absorption costing net operating income have been affected in its first year if 12,890 tables were produced instead of 10,520 and Eagle still sold 10,520 tables? (Round your intermediate calculations to 2 decimal places.) net operating income would have been $49,000 higher net operating income would have been $44,500 higher net operating income would have been $133,500 lower net operating income would not have been affected
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