Compute the net operating income or loss

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Question - Sandy Corporation has provided the following cost data for last year when 50,000 units were produced and sold:

Raw materials $200,000

Direct labor 100,000

Manufacturing overhead 200,000

Selling and administrative expense 150,000

All costs are variable except for $100,000 of manufacturing overhead and $100,000 of selling and administrative expense.

If the selling price is $10 per unit, compute the net operating income (or loss) from producing and selling 120,000 units?

A. $460,000

B. $80,000

C. $85,000

D. $105,000

Reference no: EM132659176

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