Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Units produced and sold 160,000 Cost of goods sold per unit $6.30 Selling price $11
Variable selling and administrative expenses per unit $1.10
Fixed selling and administrative expenses $423,000
Tax rate 18 %
Income Statement:
Sales= 160,000¨11= 1,760,000
COGS= 6.30*160,000= (1,008,000)
Gross profit= 752,000
Selling and administrative expense= (160,000*1.10) + 423,000= (599,000)
Earning before taxes= 153,000
Tax= 153,000*0.18= (27,540)
Net operating profit= 125,460