Question

aj manufacturing company incurred $54,000 of fixed product cost and $43,200 of variable product cost during its first year of operation. also during its first year, aj incurred $17,200 of fixed and $13,800 of variable selling and administrative costs. the company sold all of the units it produced for $176,000.

Answer 1

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Explanation:

AJ Manufacturing Company incurred a total of $97,200 in fixed costs and $57,000 in variable costs during its first year of operation.

To calculate the total fixed costs incurred by AJ Manufacturing Company, we need to add the fixed production costs of $54,000 and the fixed selling and administrative costs of $17,200. This gives us a total of $54,000 + $17,200 = $71,200 in fixed costs.

To calculate the total variable costs incurred by AJ Manufacturing Company, we need to add the variable product costs of $43,200 and the variable selling and administrative costs of $13,800. This gives us a total of $43,200 + $13,800 = $57,000 in variable costs.

Thus, the total fixed costs and the total variable costs incurred by AJ Manufacturing Company during its first year of operation are $71,200 and $57,000, respectively. The company generated $176,000 in revenue by selling all of the units it produced, which means that it earned a profit of $176,000 - $71,200 - $57,000 = $47,800 during its first year of operation.