Question
Tany Corporation is a small table manufacturing company operating in the north of Puerto Rico. Managers estimate the following costs per unit (one table) Direct
| Tany Corporation is a small table manufacturing company operating in the north of Puerto Rico. | |
| Managers estimate the following costs per unit (one table) | |
| Direct material (DM) | $6.00 |
| Direct labor (DL) | $4.00 |
| Variable manufacturing overhead (VMO) | $3.00 |
| Variable administrative expenses (VAE) | $1.00 |
| The estimated contribution margin is | 30% |
| Monthly fixed costs are | |
| Manufacturing | $10,000.00 |
| Administrative | $5,000.00 |
Total unit sold during last month is 2525, what is the total operating income?
| a. | between $100 and $120 |
| b. | between $120 and $140 |
| c. | between $140 and $160 |
| d. | between $160 and $180 |
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen and Peter Brewer
14th edition
978-007811100, 78111005, 978-0078111006
