Question: At XLT Inc, variable manufacturing costs are $80 per unit, fixed manufacturing overhead costs are $40,000, and Selling and Administrative expenses are fixed during the

At XLT Inc, variable manufacturing costs are $80 per unit, fixed manufacturing overhead costs are $40,000, and Selling and Administrative expenses are fixed during the period for $15,000. Sales are 4,000 units at a sales price of $95 per unit. Calculate the Net Operating Income using Absorption Costing if production is 8,000 units.

Multiple Choice

  • $55,000

  • $5,000

  • $25,000

  • $40,000

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