Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 3 - Cost-Volume-Profit Analysis - Assignment Material - Exercises - Page 96: 3-27(2)

Answer

Operating Income = 18,700,000 - 16,500,000 Operating Income = 2,200,000

Work Step by Step

Total Contribution Margin = Contribution Margin per Unit * Total Units Sold Total Contribution Margin = 110 * 170,000 Total Contribution Margin = 18,700,000 Operating Income = Total Contribution Margin - Fixed Costs
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