McCoy Corporation Manufactures a Computer Monitor

question 175

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:

Procedures

Established methods or ways of doing something, typically involving a series of actions or steps to be followed in a specific order.

Individual Problem Solving

The process by which an individual identifies, analyzes, and finds solutions to problems on their own.

Superior

Someone who holds a higher rank or position than others in a hierarchy or organization.

Team Members

Individuals who are part of a group working together towards a common goal.