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Kilihea Corporation produces a single product. The company's absorption costing income statement for July follows: Kilihea...

Kilihea Corporation produces a single product. The company's absorption costing income statement for July follows:
Kilihea Corporation
Income Statement
For the month ended July 31
  Sales (18,500 units) $851,000
  Cost of goods sold 579,050
  Gross margin 271,950
  Selling and administrative expenses:
  Fixed 129,500
  Variable 92,500
  Total selling and administrative expense 222,000
  Net operating income $ 49,950

The company's variable production costs are $22.30 per unit and its fixed manufacturing overhead totals $176,000 per month.

Net operating income under the variable costing method for July would be:

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ekkarill92 answered 3 years ago
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