iiluvjeffreyb
Jun 13, 2016, 03:08 PM
Calder Corporation manufactures and sells one product.The following information pertains to the company's firstyear of operations:
Variable costs per unit:
Direct Materials $92
Fixed costs per year:
Direct Labor $720,000
Fixed manufacturing overhead $3,264,000
Fixed selling and administrative $1,935,000
The company does not have any variable manufacturingoverhead costs or variable selling and administrativecosts. During its first year of operations, the companyproduced 48,000 units and sold 45,000 units. The company’sonly product sells for $258 per unit.
What is the net operating income?
I ANSWERED:
45,000*258=11,610,000 in revenue
BUT I GOT CONFUSED ON HOW TO CONTINUE..CAN SOMEONE PLEASE GIVE ME ADVICE??
Variable costs per unit:
Direct Materials $92
Fixed costs per year:
Direct Labor $720,000
Fixed manufacturing overhead $3,264,000
Fixed selling and administrative $1,935,000
The company does not have any variable manufacturingoverhead costs or variable selling and administrativecosts. During its first year of operations, the companyproduced 48,000 units and sold 45,000 units. The company’sonly product sells for $258 per unit.
What is the net operating income?
I ANSWERED:
45,000*258=11,610,000 in revenue
BUT I GOT CONFUSED ON HOW TO CONTINUE..CAN SOMEONE PLEASE GIVE ME ADVICE??