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 $82
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 $82 $200,260 Selling and administrative $15 $34,162 In its first year of operations, Eagle produced and sold 11,780 tables. The tables sold for $173 each. How would Eagle's absorption costing net operating income be affected in its first year if 14,240 tables were produced instead of 11,780 and Eagle still sold 11,780 tables? (Round your intermediate calculations to 2 decimal places.) net operating income would have been $123,633 lower net operating income would have been $34,633 higher net operating income would not have been affected net operating income would have been $39,133 higher
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