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Sycamore corporation has provided the following cost data for the last year when 100000 units were produced and

Question

Sycamore corporation has provided the following cost data for the last year when 100000 units were produced and

sold:

raw materials 200000

direct labor

manufacturing overhead: 200,000

selling and administrative expense: 150,000

All costs are variable except for 100,000 of manufacturing overhead and 100000 of selling and administrative expense. There are no beggining or ending inventories. if the selling price is 10 per unit the net operating income from producing and selling 110,000 units would be:

a)560,000

b)385,000

c)405,000

d)450,000

Business

Sycamore corporation has provided the following cost data for the last year when 100000 units were produced and