What was the absorption costing net operating income this year?

A) $81,000
B) $83,000
C) $115,000
D) $123,000

Question

What was the absorption costing net operating income this year?A) $81,000B) $83,000C) $115,000D) $123,000

Abrahim Jawad · Accepted Answer

Final Answer : C, Explanation :  The absorption costing net operating income can be calculated as follows:Sales - Cost of goods sold (including fixed manufacturing overhead) - Selling and administrative expenses = Net operating income$1,000,000 - ($300,000 + $400,000) - $185,000 = $115,000. Therefore, the answer is C, $115,000.   Reference: CHO7-Ref37Norenberg Corporation manufactures a single product.The following data pertain to the company's operations over the last two years:

What was the absorption costing net operating income this year?

A) $81,000
B) $83,000
C) $115,000
D) $123,000

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