For 2013During the current year,Winchester Company sold 80,000 units at a selling price of $20 per unit.Variable cost per unit was $15,and Winchester's net income for the year was $40,000.What was the amount of Winchester's fixed costs?

Question

Quizplus · Accepted Answer

Sales - Variable costs - Fixed costs = Profit
($20 per unit x 80,000 units)- ($15 per unit x 80,000 units)- Fixed costs = $40,000
$1,600,000 - $1,200,000 - Fixed costs = $40,000
Fixed costs = $400,000 - $40,000 = $360,000

For 2013During the Current Year,Winchester Company Sold 80,000 Units at a Selling