Goodson Inc. produces and sells a single product. The company has provided its contribution format income statement for March.
$$\begin{array} { l r }
\text { Sales } ( 4,500 \text { units } ) & \$ 427,500 \
\text { Variable costs } & 265,500 \
\text { Contribution margin } & 162,000 \
\text { Fixed costs } & 135,300 \
\text { Operating profit } & \$ 26,700
\end{array}$$
If the company sells 4,300 units, its operating profit should be closest to:
A) $7,700.
B) $25,513.
C) $26,700.
D) $19,500.

Question

Goodson Inc. produces and sells a single product. The company has provided its contribution format income statement for March.
$$\begin{array} { l r } 
\text { Sales } ( 4,500 \text { units } ) & \$ 427,500 \
\text { Variable costs } & 265,500 \
\text { Contribution margin } & 162,000 \
\text { Fixed costs } & 135,300 \
\text { Operating profit } & \$ 26,700
\end{array}$$
If the company sells 4,300 units, its operating profit should be closest to:
A) $7,700.
B) $25,513.
C) $26,700.
D) $19,500.

Quizplus · Accepted Answer

The Answer of Goodson Inc. produces and sells a single product. The company has provided its contribution format income statement for March.
$$\begin{array} { l r } 
\text { Sales } ( 4,500 \text { units } ) & \$ 427,500 \
\text { Variable costs } & 265,500 \
\text { Contribution margin } & 162,000 \
\text { Fixed costs } & 135,300 \
\text { Operating profit } & \$ 26,700
\end{array}$$
If the company sells 4,300 units, its operating profit should be closest to:
A) $7,700.
B) $25,513.
C) $26,700.
D) $19,500.

Goodson Inc If the Company Sells 4,300 Units, Its Operating Profit Should