Answer:
Results are below.
Explanation:
I will assume a selling price per unit of $60.
<u>First, we need to calculate the total unitary variable cost:</u>
Total unitary variable cost= direct material + direct labor + varaiboe overhead + variable selling and administrative expense
Total unitary variable cost= 10 + 6 + 4 + 6
Total unitary variable cost= $26
<u>Now, we can structure the income statement:</u>
<u></u>
Sales= 10,000*60= 600,000
Total variable cost= 10,000*26= ( 260,000)
Contribution margin= 340,000
Fixed manufacturing overhead per year= (220,000)
Fixed selling and administrative expense per year= (61,000)
Net operating income= 59,000
