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Anonymous

Feb 16, 2025

Neon company manufactures widgets. the following data is related to sales and production of the widgets for last year. selling price

Neon Company manufactures widgets. The following data pertains to the sales and production of widgets for the previous year:

  • Selling price per unit: $130.00
  • Variable manufacturing costs per unit: $62.00
  • Variable selling and administrative expenses per unit: $5.00
  • Fixed manufacturing overhead (total): $30,000
  • Fixed selling and administrative expenses (total): $8,000
  • Units produced during the year: 1,500
  • Units sold during the year: 1,100

Using absorption costing, what was the operating income for the previous year?

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