Fxed overhead costs are 12000 per year fixed selling and

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Chromatics, Inc., produces novelty nail polishes. Each bottle sells for 3.60. Variable unit costs are as follows:

  1. Acrylic base- .75
  2. Pigments- .38
  3. Other ingredients- .35
  4. Bottle, packing material- 1.15
  5. Selling commission- .25

 

  • Fixed overhead costs are 12000 per year. Fixed selling and administrative costs are 6720 per year. Chromatics sold 35000 bottles last year.
  • What is Chromatics' operating income last year?

Reference no: EM13597243

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