ACC 560 MART Learn by Doing/acc560mart.com ACC 560 MART Learn by Doing/acc560mart.com | Page 30

Chapter 8: Exercises 2, 6, and 9, P8-3A
E7-3
Moonbeam Company manufactures toasters. For the first 8 months of
2017, the company reported the following operating results while
operating at 75% of plant capacity:
Sales (350,000 units)

$4,375,000

Cost of goods sold

2,600,000

Gross profit

1,775,000

Operating expenses

840,000

Net income

$ 935,000

Cost of goods sold was 70% variable and 30% fixe