Question

The Cumberland Company provides the following information: Sales (250,000 units) $625,000 Manufacturing costs: Variable 212,500 Fixed...

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

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Answer #1

What is the operating income for Cumberland?

Sales - Manufacturing costs - Selling and administrative costs

625000 - 212500 - 37500 - 100000 - 25000 = $250000

Answer: a.$250,000

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