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Tany Corporation is a small table manufacturing company operating in the north of Puerto Rico.
Managers estimate the following costs per unit (one table)
Direct material (DM). $6.00
Direct labor (DL). $4.00
Variable manufacturing overhead (VMO). $3.00
Variable administrative expenses (VAE). $1.00
The estimated contribution margin is. 30%
Monthly fixed costs are
Manufacturing $10,000.00
Administrative $5,000.00
Problem 1: Total unit sold during last month is 2525, what is the total operating income.
Option a. between $100 and $120 ESTA NO
Option b. between $120 and $140
Option c. between $140 and $160
Option d. between $160 and $180
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