Answer:
Instructios are below.
Explanation:
Giving the following information:
Units produced and sold 230,000
Cost of goods sold per unit $5.30
Selling price $9.70
Variable selling and administrative expenses per unit $1.60
Fixed selling and administrative expenses $387,000
Tax rate 35%
Income statement:
Sales= 230,000*9.7= 2,231,000
COGS= 230,000*5.3= (1,219,000)
Gross profit= 1,012,000
Variable selling and administrative=(1.60*230,000)= (368,000)
Fixed selling and administrative= (387,000)
Earnings before taxes= 257,000
Tax= (257,000*0.35)= (89,950)
Net operating profit= 167,050
