The following information for the past year for the Blaine Corporation has been provided:

During the year,the company produced and sold 30,000 units of product at a selling price of $15.00 per unit.There was no beginning inventory of product at the beginning of the year.
What is the operating income (loss)for the year?

Question

The following information for the past year for the Blaine Corporation has been provided:

During the year,the company produced and sold 30,000 units of product at a selling price of $15.00 per unit.There was no beginning inventory of product at the beginning of the year.
What is the operating income (loss)for the year?

Quizplus · Accepted Answer

D)
Variable costs: Manufacturing $115,000
Marketing 30,000
Administrative 43,000
Total $188,000
Fixed Expenses: Manufacturing $125,000
Marketing 23,000
Administrative 21,000
Total $169,000
Sales $15 × 30,000 = $450,000
Less Variable costs 188,000
Contribution Margin $262,000
Less Fixed Expenses $169,000
Operating Income $93,000

The Following Information for the Past Year for the Blaine