Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. xyz inc. sells a single product for $25 per unit.

XYZ Inc. sells a single product for $25 per unit. Direct materials costs were $5...

70.2K

Verified Solution

Question

Accounting

XYZ Inc. sells a single product for $25 per unit. Direct materials costs were $5 per unit, while direct labour and variable overhead costs were $3 and $2 respectively. Fixed overhead costs amount $20,000 per month. The company has a practical production capacity of 5,000 units per month. Variable selling costs are $2 per unit. Fixed selling costs are $2,000 per month. Last month, the company produced 5,000 units and sold 3,000 units. What is the company's operating income using variable costing?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Medical Sciences
1.2K views

Identify five (5) factors that influence the brain stem respiratory centers. Discuss the specific effect of...

Programming
1.2K views

You are tasked to provide a Fat Gram Calculator program for a local Weight Loss Center....

Accounting
1.2K views

Mead Motors purchases an automobile for its new car inventory from Generous Motors, which finances this...

Accounting
1.2K views

Recording Notes Receivable: Issuance, Payment, and Default Marydale Products permits its customers to defer payment by...

Basic Math
1.2K views

14 A simplified version of photosynthesis can be represented as carbon dioxide combining with water...

Basic Math
1.2K views

An 8-foot ladder is leaning against a building. If the bottom of the ladder is...

Calculus
1.2K views

Let y =3xFind the change in y. ?y when x =3 and ?x = 0.2...

Algebra
1.2K views

Using determinants identify whether these three points A 5 2 B 4 1 and C...

Accounting
1.2K views

Dan McClure owns a thriving independent bookstore in artsy New Hope, Pennsylvania. He must...

Accounting
1.2K views

Mr. D. Chuma, a chemical scientist based at Francistown Technical College earned the ...

Finance
1.2K views

QUESTION 17 Dizzy Corp bonds with a coupon rate of 12% paid semiannually have 3...

Accounting
1.2K views

The Regal Cycle Company manufoctures three types of bicycles-a dirt bike, a mountain bike, and...