Use the information below to answer the following question(s) .Big Island Coffee Co.produced and sold 120,000 units last year.Per unit revenue and costs were as follows:
Fixed manufacturing overhead and administrative salaries are fixed costs.The per unit amounts are based on last year's production.
-Calculate this year's operating income if the company plans to produce and sell 200,000 units.

Question

Use the information below to answer the following question(s).Big Island Coffee Co.produced and sold 120,000 units last year.Per unit revenue and costs were as follows:
  Fixed manufacturing overhead and administrative salaries are fixed costs.The per unit amounts are based on last year's production.
-Calculate this year's operating income if the company plans to produce and sell 200,000 units.
A)$460,000 
B)$0 
C)$<100,000> 
D)$900,000 
E)$980,000

Quizplus · Accepted Answer

The correct answer is A because the company will make a profit of $460,000 if it produces and sells 200,000 units.

Use the Information Below to Answer the Following Question(s)