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2 November, 09:36

Lilypad Hot Tubs, Inc. reports the following information for August: Sales Revenue $ 900 comma 000 Variable Costs 310 comma 000 Fixed Costs 56 comma 000 Calculate the operating income for August using variable costing. A. $ 590 comma 000 B. $ 900 comma 000 C. $ 844 comma 000 D. $ 534 comma 000

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  1. 2 November, 10:35
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    Net operating income = $534,000

    Explanation:

    The net operating income is the result of subtracting the total variable costs and total fixed costs to the sales revenue:

    Income Statement:

    Sales Revenue = $900,000

    Variable Costs = (310,000)

    Contribution margin = 590,000

    Fixed Costs = (56,000)

    Net operating income = $534,000
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