Dentofax,Inc Calculate the Operating Income for August Using Absorption Costing

question 109

Multiple Choice

Dentofax,Inc.reports the following information for August: $$\begin{array} { | l | r | } \hline \text { Sales Revenue } & \$ 800,000 \\\hline \text { Variable Cost of Goods Sold } & 110,000 \\\hline \text { Fixed Cost of Goods Sold } & 65,000 \\\hline \text { Variable Selling and Administrative Costs } & 130,000 \\\hline \text { Fixed Selling and Administrative Costs } & 65,000 \\\hline\end{array}$$ Calculate the operating income for August using absorption costing.

• A)$430,000
• B)$240,000
• C)$995,000
• D)$370,000

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