Eagle Corporation manufactures a picnic table. Shown below is Eagle's cost structure:
|
Variable cost
per table |
Total fixed cost
for the year |
| Manufacturing cost |
$91 |
$232,050 |
| Selling and administrative |
$10 |
$34,255 |
|
In its first year of operations, Eagle produced and sold 11,050 tables. The tables sold for $185 each.
|
How would Eagle's absorption costing net operating income have been affected in its first year if 13,810 tables were produced instead of 11,050 and Eagle still sold 11,050 tables?