Answer:
$24,000
Explanation:
Selling price per unit:
= Sales ÷ units produced
= $48,000 ÷ 12,000
= $4
Variable cost per unit:
= variable costs ÷ units produced
= $18,000 ÷ 12,000
= $1.5
Fixed cost = $16,000
Net operating income if the company produces and sells 16,000 units:
= Sale - Variable cost - Fixed cost
= (16,000 × $4) - (16,000 × $1.5) - $16,000
= $64,000 - $24,000 - $16,000
= $24,000