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Tyler Company has the following information pertaining to its two product lines for last year: Variable selling and admin
Tyler Company has the following information pertaining to its two product lines for last year: Variable selling and admin. expenses Direct fixed expenses Sales Direct fixed selling and admin. expenses Variable expenses Operating income Product A $38,000 19,500 250,000 38,000 42,000 $112,500 Product B $31,000 34,500 210,000 22,000 31,000 $91,500 Common expenses are $105,000 for the year. What is the income for Tyler Company? $102,500 $120,500 $99,000 $101.000
Omega Enterprises budgeted the following sales in units: January 40,000 February 30,000 March 50,000 Omega's policy is to have 30% of the following month's sales in inventory. On January 1, inventory equaled 8,000 units. February production in units is: $39,500 $50,000 $36,000 $15,000
Expert Solution
ncome for Tyler company = Net operating income - Common expenses
Net operating income = operating income from product A + operating income from product B
= 112500 + 91500
= $ 204000
so income for Tyler company = 204000 - 105000
= $ 99000
Option (c) should be the right answer.
pfa
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