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Two years ago, we started a company to manufacture and sell small sailboats. below are our selected actual operating results for the first two years
Two years ago, we started a company to manufacture and sell small sailboats. below are our selected actual operating results for the first two years of operations (our cost structure and selling prices were the same in year 1 and year 2):
Year 1 | Year 2 | |
Units produced | 40,000 | 40,000 |
Units sold | 37,000 | 41,500 |
Absorpting costing NOI | $ 77,500 | ??? |
Variable costing NOI | $ 71,500 | ??? |
Fixes Sellind & Admin. Expenses | $ 15,000 | $ 15,000 |
What was our variable costing net operating income (NOI) in year 2 (rounded to the nearest ten dollars)?
A. $ 87,250
B. $ 83,500
C. $ 89,500
D. $ 91,750
E. $ 86,800
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