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How would eagles absorption costing net operating income

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Reference no: EM13585869

Eagle Corporation manufactures a picnic table. Shown below is Eagle's cost structure:


 Variable cost
per table		 Total fixed cost
for the year
  Manufacturing cost $91     $232,050    
  Selling and administrative $10       $34,255    

In its first year of operations, Eagle produced and sold 11,050 tables. The tables sold for $185 each.

How would Eagle's absorption costing net operating income have been affected in its first year if 13,810 tables were produced instead of 11,050 and Eagle still sold 11,050 tables?

Reference no: EM13585869

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