Answer the following questions using the information below:
The following information is for the Jeffries Corporation:
Product A: Revenue $\quad \$ 16.00$
Variable Cost $\quad \$ 12.00$
Product B: Revenue $\quad \$ 24.00$
Variable Cost $\quad \$ 16.00$
Total fixed costs
$\$ 75,000$
-What is the operating income of Jeffries Corporation,assuming actual sales total 25,000 units,and the sales mix is three units of Product A and one unit of Product B?
A) $50,000
B) $60,000
C) $77,000
D) $66,000

Question

Answer the following questions using the information below:
The following information is for the Jeffries Corporation:
 Product A: Revenue $\quad \$ 16.00$
Variable Cost $\quad \$ 12.00$
Product B: Revenue $\quad \$ 24.00$
Variable Cost $\quad \$ 16.00$
Total fixed costs
$\$ 75,000$
-What is the operating income of Jeffries Corporation,assuming actual sales total 25,000 units,and the sales mix is three units of Product A and one unit of Product B?
A) $50,000
B) $60,000
C) $77,000
D) $66,000

Quizplus · Accepted Answer

Explanation:Operating income = (Total revenue - Total variable cost - Total fixed cost)Total revenue = (Product A revenue x Product A units sold) + (Product B revenue x Product B units sold)= (16 x 15,000) + (24 x 10,000)= 240,000 + 240,000= 480,000Total variable cost = (Product A variable cost x Product A units sold) + (Product B variable cost x Product B units sold)= (12 x 15,000) + (16 x 10,000)= 180,000 + 160,000= 340,000Operating income = (480,000 - 340,000 - 75,000)= 65,000

Answer the Following Questions Using the Information Below: the Following $16.00\quad \$ 16.00$16.00

Answer the Following Questions Using the Information Below:
the Following $\quad \$ 16.00$