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
 11eaa3fe_33dd_8e69_908b_9fbc8459e96a_TB2461_00

Bee Company Is a Honey Wholesaler