XYZ Company provided the following cost information for last year when they produced and...

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Accounting

XYZ Company provided the following cost information for
last year when they produced and sold 125,000 units:
direct materials ....................... $225,000
direct labor ........................... $ 95,000
manufacturing overhead ................. $170,000
selling and administrative expenses .... $120,000
All costs are variable except for $120,000 of manufacturing
overhead and $60,000 of the selling and administrative
expenses. Assume the selling price is $5 per unit.
Calculate the amount of net income XYZ Company would report
from producing and selling 153,000 units.

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