Managerial Accounting (15th Edition)

Published by McGraw-Hill Education
ISBN 10: 007802563X
ISBN 13: 978-0-07802-563-1

Chapter 6 - Variable Costing and Segment Reporting: Tools for Management - The Foundational 15 - Required - Page 262: 4

Answer

$396.000

Work Step by Step

Total fixed cost = Fixed manufacturing overhead + Fixed selling and administrative expenses = 800,000 + 496,000 = 1,296,000 Net operating loss = Total contribution margin - Total fixed cost = 1,692,000 - 1,296,000=396.000
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