Butteco Corporation Has Provided the Following Cost Data for Last

question 197

Multiple Choice

Butteco Corporation has provided the following cost data for last year when 100,000 units were produced and sold: All costs are variable except for $100,000 of manufacturing overhead and $100,000 of selling and administrative expense.There are no beginning or ending inventories.If the selling price is $10 per unit,the net operating income from producing and selling 110,000 units would be:

• A)$450,000
• B)$385,000
• C)$405,000
• D)$560,000

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