McCoy Corporation manufactures a computer monitor. Shown below is McCoy's cost structure: In its first year of operations, McCoy produced 100,000 monitors but only sold 95,000. McCoy's gross margin in this first year was $2,629,600. McCoy's contribution margin in this first year was $2,109,000.
Under variable costing, what is McCoy's net operating income for its first year?
A) $266,000
B) $741,000
C) $1,261,600
D) $2,173,600

Question

McCoy Corporation manufactures a computer monitor. Shown below is McCoy's cost structure:  In its first year of operations, McCoy produced 100,000 monitors but only sold 95,000. McCoy's gross margin in this first year was $2,629,600. McCoy's contribution margin in this first year was $2,109,000.
Under variable costing, what is McCoy's net operating income for its first year?
A) $266,000 
B) $741,000 
C) $1,261,600 
D) $2,173,600

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11eacbfc_c6dd_e758_8ffe_f3bdb1fb6d76_TB7552_00

McCoy Corporation Manufactures a Computer Monitor