What would be the operating profit of company

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What would be the operating profit of Company X if its production output for the year had been 110,000 units (equal to the number of units sold) instead of the 120,000 units production output level assumed in table?

 

Company X

 
 

Per Unit

Totals

Operating Profit Report for Year

   

Sales volume, in Units

 

110,000

Sales Revenue

$1,400.00

$154,000,000

Cost of Goods Sold Expense (see below)

-760

-83,600,000

Gross Margin

$640.00

$70,400,000

Variable Operating Expenses

-300

-33,000,000

Contribution Margin

$340.00

$37,400,000

Fixed Operating Expenses

 

-21,450,000

Operating Profit

 

$15,950,000

Manufacturing Activity Summary for Year

Per Unit

Totals

Annual Production Capacity, in Units

 

150,000

Actual Output, in Units

 

120,000

Raw Materials

$215.00

$25,800,000

Direct Labor

125

15,000,000

Variable Manufacturing Overhead Costs

70

8,400,000

Total Variable Manufacturing Costs

$410.00

$49,200,000

Fixed Manufacturing Overhead Costs

350

42,000,000

Product Cost and Total Manufacturing Costs

$760.00

$91,200,000

Reference no: EM13535036

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