Reference no: EM132602893
Kramerica Industries had no beginning inventory and the following information on its only product.
Sale price per unit: $16.00
Direct materials used: $160,000
Direct labor incurred: $205,000
Variable manufacturing overhead: $150,000
Variable selling and administrative expenses: ?$85,000
Fixed manufacturing overhead: $95,000
Fixed selling and administrative expenses: $20,000
Units produced and sold: 50,000
Question 1: What is projected operating income next year if Kramerica sells 35,000 units?
Group of answer choices
Option 1: ($45,500)
Option 2: $140,000
Option 3: ($84,500)
Option 4: $25,000