Answer:
None of the options is correct.
Explanation:
Giving the following information:
A manufacturing company leases a building for β$90,000 per year for its manufacturing facilities. Also, the machinery in this building is being paid for in installments of β$20,000 per year.
Each unit of the product produced costs β$14 in labor and β$10 in materials. The product can be sold for β$38. Assume that the demand is 9,000 units per year.
Income statement:
Sales= (38*9000)= 342,000
COGS= (14+10)*9000= 216,000 (-)
Gross profit= 126,000
Fixed costs= 90,000 + 20,000= 110,000 (-)
Net operating profit= 16,000