In its first year of operation, Allinol Inc. planned and manufactured a total of 300,000 units...

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In its first year of operation, Allinol Inc. planned and manufactured a total of 300,000 units of its product. The company incurred $5 per unit produced in variable manufacturing costs, as well as $2 per unit sold in variable operating expenses. Fixed costs were $600,000 for manufacturing and $150,000 for operating expenses. Using absorption costing, if Allinol sold 200,000 units at $21 per unit, what was its total operating income for the year? In its first year of operation, Allinol Inc. planned and manufactured a total of 300,000 units of its product. The company incurred $5 per unit produced in variable manufacturing costs, as well as $2 per unit sold in variable operating expenses. Fixed costs were $600,000 for manufacturing and $150,000 for operating expenses. Using absorption costing, if Allinol sold 200,000 units at $21 per unit, what was its total operating income for the year?

Answer rating: 100% (QA)

To calculate the total operating income using absorption costing we need to consider both the fixed ... View the full answer