The following information pertains to Nova Co.'s cost-volume-profit relationships:
How much will be contributed to net operating income by the 1,001st unit sold?
A) $650
B) $500
C) $150
D) $0

Question

The following information pertains to Nova Co.'s cost-volume-profit relationships:
 How much will be contributed to net operating income by the 1,001st unit sold?
A) $650 
B) $500 
C) $150 
D) $0

Quizplus · Accepted Answer

Profit = (Unit CM × Q) - Fixed expenses
$0 = (Unit CM × 1,000 units) - $150,000
Unit CM = $150,000 ÷ 1,000 units = $150 per unit

The Following Information Pertains to Nova Co