In 2016, Teller Company sold 3,000 units at $600 each.Variable expenses were $420 per unit, and fixed expenses were $240,000.What was Teller's 2016 net income?
A)$300,000
B)$540,000
C)$1,260,000
D)$1,800,000

Question

Quizplus · Accepted Answer

To calculate net income, first find the total sales revenue (3,000 units x $600 = $1,800,000) and total variable expenses (3,000 units x $420 = $1,260,000). Subtract the total variable expenses and fixed expenses ($240,000) from the total sales revenue: $1,800,000 - $1,260,000 - $240,000 = $300,000.

In 2016, Teller Company Sold 3,000 Units at $600 Each