Question
Production costs: Direct materials $4.30 per unit Direct labour $4.70 per unit Other Factory overhead $375,000 at 50,000 units produced; $435,000 at 70,000 units, and
Production costs: Direct materials $4.30 per unit Direct labour $4.70 per unit Other Factory overhead $375,000 at 50,000 units produced; $435,000 at 70,000 units, and $495,000 at 90,000 units produced Selling expenses: Sales salaries $97,000 per sales person Sales commissions $0.75 per unit sold Advertising $47,500 Advertising $1.25 per unit sold Miscellaneous selling expense $16,200 General expenses: Office salaries $87,000 Supplies $12,300 Miscellaneous general expense $15,000 The selling price of Kevin's Corporation's single product is $28.
Calculate the company's projected net income by following absorption costing method (assuming 40,000 units sold)
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