Answer:
$1,550,000
Explanation:
The computation of the operating income is shown below:
As we know that
Operating income = Sales - variable cost - fixed cost
where,
Sales = 32,000 parts × $60
= $1,920,000
Variable cost = 32,000 parts × $10
= $320,000
And, the fixed cost is $50,000
So, the operating income is
= $1,920,000 - $320,000 - $50,000
= $1,550,000
We simply applied the above formula to determine the operating income
