What was the absorption costing net operating income this year?
A)$65,500
B)$51,700
C)$61,900
D)$53,300

Question

Quizplus · Accepted Answer

The absorption costing net operating income is calculated by subtracting the total cost of goods sold (COGS) and operating expenses from total sales revenue. Based on the information given in the question, the total sales revenue is $202,000, total COGS is $85,000, and total operating expenses are $51,500.

Therefore, the net operating income using absorption costing would be:

$202,000 - ($85,000 + $51,500) = $65,500

Thus, the correct answer is A).

What Was the Absorption Costing Net Operating Income This Year