Reference no: EM132757334

Problem - Macadamia Co. produced and sold 40,000 units last year. Per unit revenue and costs were as follows:

Fixed manufacturing overhead and administrative salaries are fixed costs. The per unit amounts are based on last year's production.

Q1) Calculate last year's operating income when the company produced and sold 40,000 units.

A) $0

B) $<200,000>

C) $<500,000>

D) $<800,000>

E) $<1,000,000>

Q2) Calculate this year's operating income if the company plans to produce and sell 50,000 units.

A) $50,000

B) $0

C) $<250,000>

D) $<550,000>

E) $250,000