Last Year, Hruska Corporation's Variable Costing Net Operating Income Was

question 209

Essay

Last year, Hruska Corporation's variable costing net operating income was $92,200 and ending inventory decreased by 600 units. Fixed manufacturing overhead cost per unit was $3 in both beginning and ending inventory.
Required:
Determine the absorption costing net operating income for last year. Show your work!

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Definitions:

Net Income

The remaining income of a firm after deducting every expense and tax from the gross revenue.

Divisional Income

The income generated by a specific division or segment of a larger company, useful for assessing the division's financial performance.

Residual Income

The amount of income that an individual has after all personal debts and expenses, including a mortgage, have been paid.

Minimum Return

The lowest acceptable return on investment that an investor is willing to accept, often used in evaluating projects or performance.