Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Sales Revenue $740,000
Variable Cost of Goods Sold 200,000
Fixed Cost of goods sold 197,000
Variable Selling and Administrative Cost 160,000
Fixed Selling and Administrative Costs 77,000
Under variable costing method, the product cost or cost of goods sold is calculated only by variable costs:
Sales= 740,000
Variable cost of goods sold= (200,000)
Variable Selling and Administrative Cost= (160,000)
Contribution margin= 380,000
Fixed Cost of goods sold= (197,000)
Fixed Selling and Administrative Costs= (77,000)
Net operating profit= 106,000
