McCarville, Inc., provided the following information regarding its one and only product-scissors: $$\begin{array} { l l }
\text { Fixed manufacturing costs } & \$ 420,000 \
\text { Fixed selling and adminis trative costs } & 80,000 \
\text { Fixed manufacturing costs } & 42,000 \
\text { Fixed selling and adminis trative costs } & 80,000 \
\text { Variable manuf acturing costs } & 1,030,000 \
\text { Variable s elling and administrative costs } & 120,000 \
\text { Selling unit price } & 100 \
\text { Units produced and sold } & 20,000
\end{array}$$ is the current net income.

Question

McCarville, Inc., provided the following information regarding its one and only product-scissors: $$\begin{array} { l l } 
\text { Fixed manufacturing costs } & \$ 420,000 \
\text { Fixed selling and adminis trative costs } & 80,000 \
\text { Fixed manufacturing costs } & 42,000 \
\text { Fixed selling and adminis trative costs } & 80,000 \
\text { Variable manuf acturing costs } & 1,030,000 \
\text { Variable s elling and administrative costs } & 120,000 \
\text { Selling unit price } & 100 \
\text { Units produced and sold } & 20,000
\end{array}$$ is the current net income.

Quizplus · Accepted Answer

The net income is calculated as follows: Total Revenue - Total Costs. Total Revenue = Selling unit price * Units sold = $100 * 20,000 = $2,000,000. Total Costs = Fixed manufacturing costs + Fixed selling and administrative costs + Variable manufacturing costs + Variable selling and administrative costs = $420,000 + $80,000 + $1,030,000 + $120,000 = $1,650,000. Net Income = $2,000,000 - $1,650,000 = $350,000.

McCarville, Inc Is the Current Net Income