Tulsa, Inc., planned and actually manufactured 210,000 units of its single product in 2020, its first...

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Tulsa, Inc., planned and actually manufactured 210,000 units of its single product in 2020, its first year of operation. Variable manufacturing cost was $13 per unit produced. Variable operating (nonmanufacturing) cost was $8 per unit sold. Planned and actual fixed manufacturing costs were $1,050,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $350,000. Tulsa sold 150,000 units of product at $45 per unit. Read the requirements. CID Requirement 1. Tulsa's 2020 operating income using absorption costing is (a) $2,500,000, (b) $2,200,000, (c) $2,550,000, (d) $2,850,000, or (e) none of these. Show supporting calculations. Tulsa, Inc., planned and actually manufactured 210,000 units of its single product in 2020, its first year of operation. Variable manufacturing cost was $13 per unit produced. Variable operating (nonmanufacturing) cost was $8 per unit sold. Planned and actual fixed manufacturing costs were $1,050,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $350,000. Tulsa sold 150,000 units of product at $45 per unit. Read the requirements. CID Requirement 1. Tulsa's 2020 operating income using absorption costing is (a) $2,500,000, (b) $2,200,000, (c) $2,550,000, (d) $2,850,000, or (e) none of these. Show supporting calculations.

Answer rating: 100% (QA)

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