Reference no: EM132793132

Question - Fresh Air Products manufactures and sells a variety of camping products.

Recently the company opened a new plant to manufacture a deluxe portable cooking unit.

Cost and sales data for the first month of operations are shown below:

Beginning inventory 0 units

Units produced 10,500

Units sold 8,700

Manufacturing costs

Fixed overhead $84,000

Variable overhead $3 per unit

Direct labour $12 per unit

Direct material $30 per unit

Selling and administrative costs

Fixed $197,800

Variable $3 per unit sold

The portable cooking unit sells for $110. Management is interested in the opening month's results and has asked for an income statement.

Assuming the company uses absorption costing, Calculate the Operating Income before taxes.