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Sandy Corporation has provided the following cost data for last year when 50,000 units were produced and sold: Raw materials $200,000 Direct labor 100,000 Manufacturing
Sandy Corporation has provided the following cost data for last year when 50,000 units were produced and sold:
Raw materials $200,000
Direct labor 100,000
Manufacturing overhead 200,000
Selling and administrative expense 150,000
All costs are variable except for $100,000 of manufacturing overhead and $100,000 of selling and administrative expense.
If the selling price is $12 per unit, the net operating income from producing and selling 120,000 units would be:
a) $460,000
b) $160,000
c) $85,000
d) $105,000
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