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 $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? |
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Auditing Practices In Local Governments An International Comparison
Authors: Laurence Ferry, Pasquale Ruggiero
1st Edition
180117086X, 978-1801170864
