Net operating income under variable costing,”Sales …………………………………………. $2,400,000 Variable costs: Variable cost of goods sold (15,000 units × $60 per unit)……… $900,000 Variable selling and administrative (15,000 units × $10 per unit) ……… 150,000 1,050,000 Contribution margin ………………………. 1,350,000 Fixed costs: Fixed manufacturing overhead ………. 600,000 Fixed selling and administrative …….. 600,000 1,200,000 Net operating loss ………………………… $ 150

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