Answer:
(a) $ 530,000
Explanation:
total production 260,000 units
variable manufacturing $26 per unit = $6,760,000
variable S&A $11 per unit
planned and actual fixed manufacturing $520,000
planned and actual fixed S&A $370,000
total costs during the year = $10,510,000
units sold 180,000 x $44 = $7,920,000
cost of goods sold per unit = ($26 x 180,000) + (180,000 x $520,000/260,000) = $4,680,000 + $360,000 = $5,040,000
total operating expenses = ($11 x 180,000) + $370,000 = $1,980,000 + $370,000 = $2,350,000
net income = $7,920,000 - $5,040,000 - $2,350,000 = $530,000
