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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 $91
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 | $91 | $232,050 |
Selling and administrative | $10 | $34,255 |
In its first year of operations, Eagle produced and sold 11,050 tables. The tables sold for $185 each. |
How would Eagle's absorption costing net operating income have been affected in its first year if 13,810 tables were produced instead of 11,050 and Eagle still sold 11,050 tables? (Round your intermediate calculations to 2 decimal places.) |
net operating income would have been $46,410 higher | |
net operating income would not have been affected | |
net operating income would have been $135,410 lower | |
net operating income would have been $50,910 higher |
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