How do determine what is the net operating income

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Reference no: EM132719905

The company manufactures and sells one product. Data for the first year of operations.

Variable cost per unit:

direct materials $92

Fixed cost per year:

direct labor $720,000

fixed manufacturing overhead $3,264,000

fixed selling and admin $1,935,000

There aren't any variable manufacturing overhead costs or variable selling and admin costs. During the first year, the company produced 48,000 units and sold 45,000 units. The company's only product sells for $258 unit.

Problem 1: What is the net operating income?

Reference no: EM132719905

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