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    Twatlington's Avatar
    Twatlington Posts: 1, Reputation: 1
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    #1

    Jul 18, 2009, 08:19 PM
    Determine operating income using variable-costing approach
    How can I Determine the operating income using variable-costing approach.

    Example:
    Sales: 26,000 units at $17 each
    Actual production 30,000 units
    Expected volume of production 33,000 units
    Manufacturing costs incurred
    Variable $220,000
    Fixed 93,000
    Non manufacturing costs incurred
    Variable $ 88,000
    Fixed 42,000
    Anything will help Thanks
    :p
    The_Egyptian's Avatar
    The_Egyptian Posts: 3, Reputation: 1
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    #2

    Oct 13, 2009, 03:15 AM
    Sales 442,000.00
    (17.00$*26,000units)
    minusVariable manufacturing costs for sold Qty 190,666.67
    (220,000$/30,000units*26,000units)
    minusVariable non manufacturing costs for sold Qty 76,266.67
    (88,000$/30,000units*26,000units)
    Contribution margin 175,066.67
    minusFixed manufacturing costs 93,000.00
    minusFixed non manufacturing costs 42,000.00
    Operating Income 40,066.67

    there is an excel sheet attached for revision
    The_Egyptian's Avatar
    The_Egyptian Posts: 3, Reputation: 1
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    #3

    Oct 13, 2009, 03:18 AM
    Sorry I forgot the attachment
    Attached Files
  1. File Type: xls answer.xls (21.5 KB, 894 views)
    2. morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #4

    Oct 14, 2009, 10:09 PM

    The_Egyptian, at this site we are not here to just provide solutions to people's homework problem, but rather to help them understand how to do it for themselves.

    Please see the guidelines on posting homework:
    https://www.askmehelpdesk.com/financ...-b-u-font.html
    The_Egyptian's Avatar
    The_Egyptian Posts: 3, Reputation: 1
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    #5

    Oct 18, 2009, 01:01 AM
    Quote Originally Posted by morgaine300 View Post
    The_Egyptian, at this site we are not here to just provide solutions to people's homework problem, but rather to help them understand how to do it for themselves.

    Please see the guidelines on posting homework:
    Ask Me Help Desk - Announcements in Forum : Homework Help
    Thanks for your note, and sorry for the misunderstand.
    But the solution I wrote is for discussion, I'm not sure if it's 100 % right.
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