How would eagle variable costing net operating income

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Reference no: EM13973975

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

1320_68-B-M-A-C-M (488).png

In its first year of operations, Eagle produced and sold 10,000 tables. The tables sold for $120 each. How would Eagle's variable costing net operating income have been affected in its first year if only 9,000 tables were sold instead of 10,000? 

A. net operating income would have been $37,100 lower
B. net operating income would have been $45,800 lower
C. net operating income would have been $56,000 lower
D. net operating income would have been $62,000 lower

Reference no: EM13973975

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