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2 years ago

14

Zippy company manufactured 10,000 units in December with a total product cost of $25,472 They had zero finished goods inventory

at the start of December. In December Zippy sold 7,364 units at a unit price of $5.26. Period expenses were $3,722. What is the amount of Zippy's operating income? Round any intermediate calculations to four decimal places.

1 answer:

Mnenie [13.5K]2 years ago

6 0

The amount of Zippy's operating income is

$16255.0592

<h3>Cost per unit is given as </h3>

$= \frac{total cost of goods manufactured}{number of units}\\\\
= \frac{25472}{10000}\\\\
= $2.5472 per unit
$

So, cost of goods sold

$= Number of units * cost per unit\\\\
= 7364 * 2.5472 \\\\
= $18757.5808
$

Therefore, operating income

$= sales - cost of goods sold - period expenses\\\\
= 7364*5.26 - 18757.5808 - 3722\\\\
= $16255.0592
$

For more information on operating income, visit

brainly.com/question/16232387

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