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.
Required:
Calculate this year's operating income if the company plans to produce and sell 200,000 units.

Question

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.
Required:
Calculate this year's operating income if the company plans to produce and sell 200,000 units.

Quizplus · Accepted Answer

The Answer of 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.
Required:
Calculate this year's operating income if the company plans to produce and sell 200,000 units.