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 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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