Moonwalker's CVP income statement included sales of 4,000 units, a selling price of $100, variable expenses of $60 per unit, and fixed expenses of $88,000.
-Net income is
A)$400,000.
B)$160,000.
C)$152,000.
D)$72,000.

Question

Quizplus · Accepted Answer

Net income is calculated as (Sales - Variable Expenses - Fixed Expenses). Sales = 4,000 units * $100 = $400,000. Variable Expenses = 4,000 units * $60 = $240,000. Contribution Margin = $400,000 - $240,000 = $160,000. Net Income = $160,000 - $88,000 = $72,000.

Moonwalker's CVP Income Statement Included Sales of 4,000 Units, a Selling