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The following income statements are provided for Li Company's last two years of operation: 2012 2013 Number of units produced and sold 4,100 3,700 Sales
The following income statements are provided for Li Company's last two years of operation:
2012 | 2013 | |
Number of units produced and sold | 4,100 | 3,700 |
Sales revenue | $69,700 | $62,900 |
Cost of goods sold | 55,300 | 49,960 |
Gross margin | 14,400 | 12,940 |
General, selling and administrative expenses | 12,620 | 11,740 |
Net income | $1,780 | $1,200 |
Assuming that cost behavior did not change over the two year period, what is the annual amount of the company's fixed manufacturing overhead?
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