Today Company has the following data about its only product: Today Company uses the contribution approach.What is the operating income?
A)$2,060,000
B)$2,120,000
C)$2,240,000
D)$2,970,000

Question

Today Company has the following data about its only product:   Today Company uses the contribution approach.What is the operating income?
A)$2,060,000 
B)$2,120,000 
C)$2,240,000 
D)$2,970,000

Quizplus · Accepted Answer

Without additional information, calculating the operating income is not possible. The contribution approach requires information about the unit selling price, unit variable cost, and the total fixed cost. The given product codes (11ea8234_0f1a_6617_9591_855026a5d434_TB4157_00 and 11ea8234_0f1a_8d28_9591_512990b87066_TB4157_00) do not provide any such information. Therefore, none of the options can be chosen as the answer.

Today Company Has the Following Data About Its Only Product