Andante Company had sales of 1,500 units more than breakeven point.Andante's fixed costs are $450,000 and its contribution margin was $30 per unit.How much profit did Andante have?

Question

Quizplus · Accepted Answer

The profit is calculated as the contribution margin per unit multiplied by the number of units sold above the breakeven point. Here, it's $30 * 1,500 = $45,000.

Andante Company Had Sales of 1,500 Units More Than Breakeven