Total production cost- #360,000
Factory overhead cost- #56,000
Selling price per unit- # 120
Production volume 4000 units
What is the total manufacturing profit?
-
A.
#64,000 -
B.
#120,000 -
C.
#360,000 -
D.
#480,000
Correct Answer: Option B
Explanation
selling price x production volume
120 x 4000 = 480,000
Total sales – cost of production
480,000 – 360,000 = 120,000 (profit)