Saver Company produces only one product.Monthly fixed expenses are $20,000, monthly unit sales are 3,500, and the unit contribution margin is $7.How much is monthly net profit?

Question

Quizplus · Accepted Answer

The monthly net profit is calculated by multiplying the unit contribution margin by the number of units sold and then subtracting the fixed expenses: (3,500 units * $7) - $20,000 = $24,500 - $20,000 = $4,500.

Saver Company Produces Only One Product