McCoy Corporation Manufactures a Computer Monitor

question 68

Multiple Choice

McCoy Corporation manufactures a computer monitor. Shown below is McCoy's cost structure: In its first year of operations, McCoy produced 100,000 monitors but only sold 95,000. McCoy's gross margin in this first year was $2,629,600. McCoy's contribution margin in this first year was $2,109,000.
Under variable costing, what is McCoy's net operating income for its first year?

• A) $266,000
• B) $741,000
• C) $1,261,600
• D) $2,173,600

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Definitions:

Determine Resources

The process of identifying and assessing the materials, finances, personnel, and time needed to achieve an objective or carry out a project.

Learning And Development Activities

Educational or training initiatives aimed at enhancing the knowledge, skills, and competencies of employees for career advancement.

Costs

Expenses related to attracting recruits.

Human Resource Planning

A process used to determine future human resource requirements and the business processes that will be needed to support and enable those resources by anticipating future business demands, analyzing the impacts of these demands on the organization, determining the current availability of human resources and the applicable business processes, and making decisions on how to effectively adapt and utilize firms’ human resources.