Olympus Company sells 1 400 units per month at a price of $28.00 per unit. The variable cost is $22.50 per unit. Fixed costs are $6 900 per month. How much is the net profit?

Question

Quizplus · Accepted Answer

Net profit is calculated as (Sales - Variable Costs - Fixed Costs). Sales = 1,400 units * $28 = $39,200. Variable Costs = 1,400 units * $22.50 = $31,500. Net Profit = $39,200 - $31,500 - $6,900 = $800.

Olympus Company Sells 1 400 Units Per Month at a Price