Answer
$64.000
Work Step by Step
Selling and administrative expenses = 4 per unit * 35.000 units + 496.000= 636.000
Net operating income under absorption costing: 700.000 (Gross margin) - 636.000 = $64.000
Managerial Accounting (15th Edition)
by Garrison, Ray; Noreen, Eric, Brewer, Peter
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: 6
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