Wolanski Corporation has provided the following data for its most recent year of

Question

Wolanski Corporation has provided the following data for its most recent year of operations: Selling price per unit $ 48 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 11 Direct labor $ 5 Variable manufacturing overhead $ 5 Fixed manufacturing overhead per year $ 110,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 4 Fixed selling and administrative expense per year $ 71,000 Units in beginning inventory 0 Units produced during the year 11,000 Units sold during the year 8,000 Units in ending inventory 3,000 The net operating income (loss) under variable costing is closest to: Multiple Choice $216,000 $184,000 $3,000 $33,000

Explanation / Answer

Answer is $3000

Particulars Amt Sales Price 48 Less: Direct Material 11 Less: Direct Labor 5 Less: Variable Manufacturing Overhead 5 Less; variable Selling Overhead 4 Contribution Per Unit (A) 23 No of Units sold (B) 8000 Total Contribution 184000 Less: Fixed Manufacturing Overhead 110000 Less: Fixed Admin Overhead 71000 Net Income 3000

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