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?
- #64,000
-
#120,000
- #360,000
- #480,000
The correct answer is: B
Explanation
selling price x production volume
120 x 4000 = 480,000
Total sales - cost of production
480,000 - 360,000 = 120,000 (profit)