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What is the total operating income

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Reference no: EM131784402

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

Total unit sold during last month is 2525, what is the total operating income?

a. between $100 and $120

b. between $120 and $140

c. between $140 and $160

d. between $160 and $180

Reference no: EM131784402

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