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 97: 3-28(2)

Answer

Operating Income = 647,142.80 - 405,000 Operating Income = 242,142.80

Work Step by Step

Total Contribution Margin = Weighted Average Contribution Margin per Unit \times Total Units Sold Total Contribution Margin = 3.8571 \times 168,000 Total Contribution Margin = 647,142.80 Operating Income = Total Contribution Margin - Fixed Costs
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