Answer:
Net operating income= 450,000
Explanation:
Giving the following information:
The sales budget for the year shows 50,000 units and total sales of $2,000,000. The total unit cost is $22. Selling and administrative expenses are expected to be $300,000.
Tax rate= 25%
We need to do an income statement:
Sales= 2,000,000
Cost of goods sold= (50,000*22)= (1,100,000)
Gross profit= 900,000
Selling and administrative expenses= (300,000)
Income before tax= 600,000
Tax= (0,25*600,000)= (150,000)
Net operating income= 450,000
