Question
Hi, need help checking the answer to this 2 exercises. #1(A) and #2(C). . Brown Company has no beginning and ending inventories, and reports the
Hi, need help checking the answer to this 2 exercises. #1(A) and #2(C).
. Brown Company has no beginning and ending inventories, and reports the following data about its only product:
Direct materials used $630,000
Direct labor $280,000
Fixed indirect manufacturing $200,000
Fixed selling and administrative $75,000
Variable indirect manufacturing $125,000
Variable selling and administrative $80,000
Selling price(per unit) $100
Units produced and sold 25,000
Gomez Company uses the contribution approach to prepare the income statement. What is the operating income?
A) $1,110,000
B) $1,390,000
C) $1,590,000
D) $1,750,000
Ahmad Company has no beginning and ending inventories, and reports the following data about its only product:
Direct materials used $300,000
Direct labor $75,000
Fixed indirect manufacturing $250,000
Fixed selling and administrative $140,000
Variable indirect manufacturing $125,000
Variable selling and administrative $150,000
Selling price(per unit) $200
Units produced and sold 10,000
Ahmad Company uses the contribution approach to prepare the income statement. What is the contribution margin?
A) $750,000
B) $1,000,000
C) $1,350,000
D) $1,625,000
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