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Question - Johnson Company provided the following cost information for last year when they produced and sold 125,000 units:
Direct materials $200,000
Direct labor 100,000
Manufacturing overhead 180,000
Selling and administrative expenses 150,000
All costs are variable except for $100,000 of manufacturing overhead and $60,000 of the selling and administrative expenses. Assume the selling price is $10 per unit.
Calculate the amount of net income Johnson Company would report from producing and selling 150,000 units.
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