Answer:
Net operating income= 60,500
Explanation:
Giving the following information:
Variable manufacturing costs............ $23
Variable marketing costs.................... $6
Fixed manufacturing costs................$13
Administrative expenses, all fixed.....$19.5
Under the variable costing method, the unitary product cost is calculated using only the manufacturing costs.
First, we need to calculate the total fixed costs:
Fixed manufacturing costs= 2,200*13= 28,600
Fixed administrative expense= 1,800*19.5= 35,100
Total unitary variable cost= 23 + 6= 29
Now, we can calculate the income statement:
Sales= 1,800*98= 176,400
Variable cost= 1,800* 29= (52,200)
Contribution margin= 124,200
Fixed manufacturing costs= (28,600)
Fixed administrative expense= (35,100)
Net operating income= 60,500
