In 2013, Teller Company sold 3,000 units at $400 each.Variable expenses were $280 per unit, and fixed expenses were $160,000.What was Teller's 2013 net income?
A)$200,000
B)$360,000
C)$840,000
D)$1,200,000

Question

Quizplus · Accepted Answer

Net income is calculated as total sales minus total variable expenses and fixed expenses. Total sales = 3,000 units * $400 = $1,200,000. Total variable expenses = 3,000 units * $280 = $840,000. Net income = $1,200,000 - $840,000 - $160,000 = $200,000.

In 2013, Teller Company Sold 3,000 Units at $400 Each