Use the Information Below to Answer the Following Question(s)

question 113

Multiple Choice

Use the information below to answer the following question(s) .Macadamia Co.produced and sold 40,000 units last year.Per unit revenue and costs were as follows:
Fixed manufacturing overhead and administrative salaries are fixed costs.The per unit amounts are based on last year's production.
-Calculate last year's operating income when the company produced and sold 40,000 units.

• A)$0
• B)$<200,000>
• C)$<500,000>
• D)$<800,000>
• E)$<1,000,000>

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Definitions:

Noncash Investing

Investment activities that do not involve the immediate outlay of cash, such as the exchange of one asset for another.

Financing Activities

Transactions and events that affect the long-term liabilities and equity of a company, including issuing shares, borrowing money, and repaying debt.

Statement Of Cash Flows

A financial report summarizing the total cash inflows and outflows experienced by a corporation.

Operating Activities

Business actions directly related to producing and delivering goods and services, which are reflected in the company's cash flow.