Margot Co. sells markers, and information relating to Year 1 is below. the company produced...

 

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Margot Co. sells markers, and information relating to Year 1 is below. • the company produced 1,000,000 units, which is normal production for Harvey . • the company sold 600,000 units • production of each marker costs $0.35; $0.10 are fixed manufacturing costs and $0.25 are variable manufacturing costs At Year 1 end, the company reported the following income statement according to GAAP (absorption costing): ered Revenue $600,000 COGS 210,000 Gross Profit 390,000 Fixed Marketing Cost 10,000 Operating Income $380,000 Under Variable Costing, what is Year 1 Operating Income? Margot Co. sells markers, and information relating to Year 1 is below. • the company produced 1,000,000 units, which is normal production for Harvey . • the company sold 600,000 units • production of each marker costs $0.35; $0.10 are fixed manufacturing costs and $0.25 are variable manufacturing costs At Year 1 end, the company reported the following income statement according to GAAP (absorption costing): ered Revenue $600,000 COGS 210,000 Gross Profit 390,000 Fixed Marketing Cost 10,000 Operating Income $380,000 Under Variable Costing, what is Year 1 Operating Income?

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Under variable costing only variable manufacturing costs are included in the cost of goods sold whil... View the full answer