What would be the operating profit of Company X if its production output for the year had been…


Question Description:

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What would be the operating profit of Company X if its production output for the year had been 110,000 units (equal to the number of units sold) instead of the 120,000 units production output level assumed in table? Company X Per Unit Totals Operating Profit Report for Year Sales volume, in Units 110,000 Sales Revenue $1,400.00 $154,000,000 Cost of Goods Sold Expense (see below) -760 -83,600,000 Gross Margin $640.00 $70,400,000 Variable Operating Expenses -300 -33,000,000 Contribution Margin $340.00 $37,400,000 Fixed Operating Expenses -21,450,000 Operating Profit $15,950,000 Manufacturing Activity Summary for Year Per Unit Totals Annual Production Capacity, in Units 150,000 Actual Output, in Units 120,000 Raw Materials $215.00 $25,800,000 Direct Labor 125 15,000,000 Variable Manufacturing Overhead Costs 70 8,400,000 Total Variable Manufacturing Costs $410.00 $49,200,000 Fixed Manufacturing Overhead Costs 350 42,000,000 Product Cost and Total Manufacturing Costs $760.00 $91,200,000

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