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Dentofax,Inc Calculate the Operating Income for August Using Absorption Costing

Question 29

Multiple Choice

Dentofax,Inc.reports the following information for August:  Sales Revenue $800,000 Variable Cost of Goods Sold 110,000 Fixed Cost of Goods Sold 65,000 Variable Selling and Administrative Costs 130,000 Fixed Selling and Administrative Costs 65,000\begin{array} { | l | r | } \hline \text { Sales Revenue } & \$ 800,000 \\\hline \text { Variable Cost of Goods Sold } & 110,000 \\\hline \text { Fixed Cost of Goods Sold } & 65,000 \\\hline \text { Variable Selling and Administrative Costs } & 130,000 \\\hline \text { Fixed Selling and Administrative Costs } & 65,000 \\\hline\end{array} Calculate the operating income for August using absorption costing.


A) $430,000
B) $240,000
C) $995,000
D) $370,000

Correct Answer:

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