Last year Minden Company introduced a new product and sold 15,000 units of it at a price of $70 per unit. The product's variable expenses are $40 per unit and its fixed expenses are $540,000 per year. Required: 1. What was this product's net operating income (loss) last year

net operating loss -$90,000

Explanation:

The net operating income or loss is the excess of sales revenue over the operating expenses of the product.

Sales revenue=number of units sold* price per unit

Sales revenue=15,000*$70

sales revenue=$1,050,000

operating expenses=total variable cost+fixed expenses

total variable cost=15,000*$40=$600,000

fixed expenses=$540,000

total operating expenses=$600,000+$540,000=$1,140,000

net operatig income/(loss)=$1,050,000-$1,140,000=-$90,000

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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