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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 2518, 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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