Tany Corporation is a small table manufacturing company operating in the north of Puerto Rico.
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Managers estimate the following costs per unit (one table)
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Direct material (DM)
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$6.00
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Direct labor (DL)
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$4.00
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Variable manufacturing overhead (VMO)
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$3.00
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Variable administrative expenses (VAE)
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$1.00
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The estimated contribution margin is
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30%
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Monthly fixed costs are
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Manufacturing
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$10,000.00
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Administrative
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$5,000.00
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Total unit sold during last month is 2525, what is the total operating income?
a. between $100 and $120
b. between $120 and $140
c. between $140 and $160
d. between $160 and $180