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Calder Corporation manufactures and sells one product. The following
information pertains to the company’s first year of operations:
Variable costs per unit:
Direct Materials……………………….. $92
Fixed costs per year:
Direct Labor…………………………… $720,000
Fixed manufacturing overhead……… $3,264,000
Fixed selling and administrative…….. $1,935,000
The company does not have any variable manufacturing overhead costs
or variable selling and administrative costs. During its first year of
operations, the company produced 48,000 units and sold 45,000 units. The
company’s only product sells for $258 per unit.
Required:
What is the net operating income?
