Northern, Inc. just finished its second year of operations. In the first year it produced 1,000 units and sold 400. The second year resulted in the same production level but sales were 1,200 units. The direct (variable) costing income statements for both years are shown below. YEAR 1 YEAR 2 Sales $ 60,000 $180,000 Variable cost of goods sold $26,000 $78,000 Variable selling and admin 800 26,800 2,400 80,400 Contribution margin 33,200 99,600 Fixed manufacturing overhead 40,000 40,000 Fixed selling and administration 15,000 55,000 15,000 55,000 Operating income $(21,800) $ 44,600 Total production costs for Northern during year 1 were: A. $65,000 B. $66,000 C. $81,800 D. $105,000

Northern, Inc. just finished its second year of operations. In the first year it produced 1,000 units and sold 400. The second year resulted in the same production level but sales were 1,200 units....

Northern, Inc. just finished its second year of operations. In the first year it produced 1,000 units and sold 400. The second year resulted in the same production level but sales were 1,200 units. The direct (variable) costing income statements for both years are shown below.

	YEAR 1	YEAR 2
Sales		$ 60,000		$180,000
Variable cost of goods sold	$26,000		$78,000
Variable selling and admin	800	26,800	2,400	80,400
Contribution margin		33,200		99,600
Fixed manufacturing overhead	40,000		40,000
Fixed selling and administration	15,000	55,000	15,000	55,000
Operating income		$(21,800)		$ 44,600

Total production costs for Northern during year 1 were:

A. $65,000

B. $66,000

C. $81,800

D. $105,000

Jun 09, 2022

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Northern, Inc. just finished its second year of operations. In the first year it produced 1,000 units and sold 400. The second year resulted in the same production level but sales were 1,200 units....

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