The Norman Company recorded net operating income of $51,000 on sales of $280,000.If the company's variable costs were 60% of sales, fixed costs must have been:

Name: The Norman Company recorded net operating income of $51,000 on sales of $280,000.If the company's variable costs were 60% of sales, fixed costs must have been:
Brand: Quizplus
Rating: 4.9 (55 reviews)

Question

Quizplus · Accepted Answer

Variable costs = 60% of sales = 0.60 x $280,000 = $168,000Fixed costs = Net operating income - Variable costs = $51,000 - $168,000 = $117,000

The Norman Company Recorded Net Operating Income of $51,000 on Sales