Purchase Solution

Calculation of Operating Income

Not what you're looking for?

Ask Custom Question

Bob's Backpacks manufactures school backpacks adorned with movie-theme logos. During the first quarter of the year, the company had the following costs:

Direct materials used $51,500
Direct labor 39,000
Factory rent 73,500
Factory equipment depreciation 13,500
Office equipment depreciation 1,100
Marketing expenses 5,800
Administrative expenses 15,500

The company had no beginning or ending work in process inventory and no beginning finished-goods inventory. Although 7,600 units were started and finished during the quarter, just 4,900 were sold, for an average price of $32 each.

Required:

Calculate Bob's Backpacks' operating income for the first quarter. If required, round your interim calculations to the nearest whole number.

Attachments
Purchase this Solution
Solution Summary

Solution includes a Word-formatted attachment and 2 references.

Solution Preview

--- Full formatted solution in the attached WORD document. ---

Sales 4,900 x 32 = 156,800
Direct materials 51,500
Labor 39,000
Rent 73,500
Depreciation/equip. 13,500
Depreciation/Office 1,100
Marketing 5,800
Administrative 15,500
Expenses = 199,900
Operating loss ($43,100)
* To determine the ...

Purchase this Solution
Free BrainMass Quizzes
Operations Management

This quiz tests a student's knowledge about Operations Management

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

View More Free Quizzes
Related BrainMass Solutions

  • Calculation of Ending Finished Goods Inventory

    $12.20 per unit Cost of ending inventory of 3000 units =3000*12.2 $36,600.00 Operating Income= Sales -Operating Costs in US$ Sales= 204000 Less Operating Costs= $188,400.00 Operating

  • Commercial Real Estate Net Operating Income calculation

    196824 Commercial Real Estate Net Operating Income calculation Given the following information, what is the net operating income assuming below-line treatment?

  • Operating income

    of operating income.

  • Calculation of Operating Income and Net Incomes

    590208 Calculation of Operating Income and Net Incomes Given the following information: Total assets: $250,000 Debt (12% interest rate): $150,000 Equity: $40,000 Variable cost of production:

  • Cannondale transaction effect:Cost of Sales&Operating Income

    income = Gross profit - Selling, general, and administrative expenses = 250,000 - 150,000 = $100,000 The solution provides step by step method for the calculation of Gross profit and Operating

  • Sustainable Growth Rate; Retention Rate; Payout Rate; Margin

    Sustainable Growth Rate; Retention Rate; Payout Rate; Marginal Tax Rate; Average Tax Rate; Calculation of Income Taxes; Calculation of Operating Cash Flow; Equity Multiplier; ROE; Net Working Capital.

  • Managerial Accounting

    Net Operating Expenses = Sales - Net Operating Income Net Operating Expenses = 10,890,000-609,840 = 10,280,160 The solution explains the calculation of margin, turnover, return on investment and residual income

  • Planning & Budgeting for Andy Barber

    Assume the barbers' compensation is a fixed cost Show calculation please. 2 Determine break even point (annual) in number of haircuts. Show calculation and statement. 3 What will be the operating income if 20,000 haircuts are performed?

  • Net operating income

    The new operating income is 360,000-288,000-40,000=32,000 The solution explains the calculation of net operating income.

  • Northern Division of Smith Co: Compute Residual income

    D: Residual Income = Net Operating Income - (Minimum Required Return) = $20,000 - ($150,000 × 0.12 = $18,000) = $2,000 The answer shows the calculation and the basis for the answer.

View More Related Solutions