The HF Corporation manufactures and sells toy gyroscopes. The following data is
related to sales and production of the toy gyroscopes for last year.
Selling price per unit $8.00
Variable manufacturing costs per unit $1.83
Variable selling and administrative expenses per unit $4.45
Fixed manufacturing overhead (in total) $75,000
Fixed selling and administrative expenses (in total) $80,000
Units produced during the year 500,000
Units sold during the year 150,000
Using absorption costing, what is operating income for last year?
