Vegas Company Has the Following Unit Costs -
Vegas Produced and Sold 10,000 Units

question 9

Multiple Choice

Vegas Company has the following unit costs:
$\begin{array}{llr} \text { Variable manufacturing overhead } &\$25\\ \text { Direct materials } &20\\ \text { Direct labor} &19\\ \text { Fixed manufacturing overhead} &12\\\text { Fixed marketing and administrative }&7\end{array}$

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Vegas produced and sold 10,000 units. If the product sells for $100, what is the operating profit under full absorption costing?

• A) $170,000
• B) $240,000
• C) $290,000
• D) $360,000

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