Bee Company is a honey wholesaler.An income statement and other data for the second quarter of the year are given below: Bee Company's net operating income for the second quarter using the contribution approach is:

Question

Bee Company is a honey wholesaler.An income statement and other data for the second quarter of the year are given below:   Bee Company's net operating income for the second quarter using the contribution approach is:

Quizplus · Accepted Answer

Unit sales = $960, 000 ÷ $60 per unit = 16, 000 units
Selling expenses = Fixed selling expenses + (0.08 × Sales)
$200, 000 = Fixed selling expenses + (0.08 × $960, 000)
Fixed selling expenses = $200, 000 - $76, 800 = $123, 200
Administrative expenses = Fixed administrative expenses + ($2 per unit × 16, 000 units)
$75, 000 = Fixed administrative expenses + ($2 per unit × 16, 000 units)
Fixed administrative expenses = $75, 000 - $32, 000 = $43, 000
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Bee Company Is a Honey Wholesaler