The Cumberland Company provides the following information:
| Sales (250,000 units) | $625,000 |
| Manufacturing costs: | |
| Variable | 212,500 |
| Fixed | 37,500 |
| Selling and administrative costs: | |
| Variable | 100,000 |
| Fixed | 25,000 |
What is the operating income for Cumberland?
a.$250,000
b.$62,500
c.$312,500
d.$625,000
What is the operating income for Cumberland?
Sales - Manufacturing costs - Selling and administrative costs
625000 - 212500 - 37500 - 100000 - 25000 = $250000
Answer: a.$250,000
The Cumberland Company provides the following information: Sales (250,000 units) $625,000 Manufacturing costs: Variable 212,500 Fixed...
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Fixed Manufacturing overhead
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sales
Units in Beginning inventory
Units produced
Units Sold
Variable Cost of Goods Sold
variable selling and administrative expense
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