Answer:
b.$5,912.50
Explanation:
The computation of the operating income is shown below:
= Sales - Direct materials cost - Direct labor cost - Manufacturing overhead cost - Total selling and administrative expense
where,
Sales = Number of units × selling price per unit
= 825 units × $74.80
= $61,710
Direct materials cost = Number of units × Direct materials per unit
= 825 units × $13
= $10,725
Direct labor cost = Number of units × Direct labor per unit
= 825 units × $13
= $7,260
Manufacturing overhead cost = Number of units × Manufacturing overhead per unit
= 825 units × $16.50
= $13,612.50
And, the Total selling and administrative expense is $24,200
Now put these values to the above formula
So, the value would equal to
= $61,710 - $10,725 - $7,260 - $13,612.50 - $24,200
= $5,912.50
Answer:
The correct answer is letter "C": both costs and revenues may be analyzed.
Explanation:
Incremental analysis studies two options from where only one is to be selected. It is a helpful tool that allows allocating limited resources efficiently. It is mostly implemented to find out which alternative provides the greater yield producing at the lowest cost. Incremental analysis does not consider sunk or past costs.
Therefore, <em>incremental analysis may study both costs and revenues between two options.</em>
2002 Alan cocoa so 20 characters is dodo
