Answer:
Instructions are below.
Explanation:
Giving the following information:
Accurate Metal Company sold 40,500 units of its product for $420 per unit. The total variable cost per unit is $203, consisting of $196 in variable production cost and $7 in variable selling and administrative cost.
Under the variable costing method, the unitary product cost includes direct material, direct labor, and variable overhead.
Sales= 40,500*420= 17,010,000
Variable cost= 196*40,500= (7,938,000)
Contribution margin= 9,072,000
Variable selling and administrative= (40,500*7)= (283,500)
Net operating income= 8,833,500
