Eagle Corporation Manufactures a Picnic Table

question 43

Multiple Choice

Eagle Corporation manufactures a picnic table. Shown below is Eagle's cost structure: In its first year of operations, Eagle produced and sold 10,000 tables. The tables sold for $120 each.
-How would Eagle's variable costing net operating income have been affected in its first year if only 9,000 tables were sold instead of 10,000?

• A)net operating income would have been $37,100 lower
• B)net operating income would have been $45,800 lower
• C)net operating income would have been $56,000 lower
• D)net operating income would have been $62,000 lower

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