Question

Lilypad Hot​ Tubs, Inc. reports the following information for​ August: Sales Revenue $ 900 comma 000 Variable Costs 310 comma 000 Fixed Costs 56 comma 000 Calculate the operating income for August using variable costing. A. $ 590 comma 000 B. $ 900 comma 000 C. $ 844 comma 000 D. $ 534 comma 000

Answer 1

Net operating income= $534,000

Step-by-step explanation:

The net operating income is the result of subtracting the total variable costs and total fixed costs to the sales revenue:

Income Statement:

Sales Revenue= $900,000

Variable Costs= (310,000)

Contribution margin= 590,000

Fixed Costs= (56,000)

Net operating income= $534,000