During its first year of operation Salon Manufacturing Company sold 1,200 units of inventory. Salon incurred variable product cost of $6.50 per unit and $2,500 of fixed manufacturing overhead costs. The sales price of the products was $10.00 per unit. Salon uses variable costing. Based on this information Salon will report net income of

Net income is $1,700

Explanation:

Sales revenue ($10*1200)          $12000

Variable cost($6.5*1200)            ($7800)

Contribution margin                     $4200

Fixed manufacturing overhead($2500)

Net income                                   $1700

Using variable costing method implies that the fixed overhead cost is not charged to products instead expensed once it is incurred as a period costs rather than each item of inventory having its share of overhead cost as it is obtainable under absorption costing method

the u.s. census bureau produces data on the population and economy nationwide. it can you to analyze the kind of people living in your neighborhood. it does not show you the market of people willing to buy your product or an existing market for your product. that will require more market research. the census bureau only gives you an insight to the demographics in your area.

our agriculture industry and our business industry