Reference no: EM132602893

Kramerica Industries had no beginning inventory and the following information on its only product.

Sale price per unit: $16.00

Direct materials used: $160,000

Direct labor incurred: $205,000

Variable manufacturing overhead: $150,000

Variable selling and administrative expenses: ?$85,000

Fixed manufacturing overhead: $95,000

Fixed selling and administrative expenses: $20,000

Units produced and sold: 50,000

Question 1: What is projected operating income next year if Kramerica sells 35,000 units?

Group of answer choices

Option 1: ($45,500)

Option 2: $140,000

Option 3: ($84,500)

Option 4: $25,000