This Question 4 pts 2l of 30 19 complete Clay Earth Company

This Question: 4 pts 2l of 30 (19 complete) ? Clay Earth Company sells ceramie potery at a wholesale prioe of $7.00 per unit. The variable cost of manuflactume in $22 per unt The foed oouts are $5,000 per monith sold 5,400 units during this month. Caloulate Clay Eartts Income (oss) for this month O A (35,000) O C. $20.850

Solution

Calculate operating income (loss)

So answer is c) $20650

Sale (5400*7)	37800
Less: Variable cost (5400*2.25)	12150
	25650
Less: Fixed cost	-5000
Operating income	20650