ABC Manufacturing produces metal lampposts. The company's income statements for the last two years are given below. The company has no beginning or ending inventories. Last Year This Year Units sold. 60,000 85,000 Sales. 1,440,000. 2,040,000 Less cost of goods sold. 785,000 1,060,000 Gross margin 655,000 980,000 Less operating expenses. 237,000 312,000 Net income 418,000. 668,000 Determine the company's total fixed costs. a) 182,000 b) 125,000 c) 205,700 d) 162,500
ABC Manufacturing produces metal lampposts. The company's income statements for the last two years are given below. The company has no beginning or ending inventories. Last Year This Year Units sold. 60,000 85,000 Sales. 1,440,000. 2,040,000 Less cost of goods sold. 785,000 1,060,000 Gross margin 655,000 980,000 Less operating expenses. 237,000 312,000 Net income 418,000. 668,000 Determine the company's total fixed costs. a) 182,000 b) 125,000 c) 205,700 d) 162,500
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter2: Basic Managerial Accounting Concepts
Section: Chapter Questions
Problem 17MCQ: Use the following information for Multiple-Choice Questions 2-13 through 2-18: Last year, Barnard...
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ABC Manufacturing produces metal lampposts. The company's income statements for the last two years are given below. The company has no beginning or ending inventories.
Last Year This Year
Units sold. 60,000 85,000
Sales. 1,440,000. 2,040,000
Less cost of goods sold. 785,000 1,060,000
Gross margin 655,000 980,000
Less operating expenses. 237,000 312,000
Net income 418,000. 668,000
Determine the company's total fixed costs.
a) 182,000
b) 125,000
c) 205,700
d) 162,500
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