McCoy Corporation Manufactures a Computer Monitor

question 297

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 absorption costing, what is McCoy's net operating income for its first year?

• A) $266,000
• B) $786,600
• C) $1,261,600
• D) $2,173,600

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Definitions:

Total Destruction

The complete and utter devastation or annihilation of something, often used in the context of warfare or natural disasters.

General Sherman

William Tecumseh Sherman, a Union general during the American Civil War, known for his "March to the Sea," a campaign of total war strategy against the Confederate South.

March To The Sea

A strategic military campaign during the American Civil War where Union General William Tecumseh Sherman led forces from Atlanta to Savannah, Georgia, destroying military targets as well as civilian property to cripple the Confederate war effort.

Georgia

A state in the Southeastern region of the United States or alternatively, a country located at the intersection of Europe and Asia.