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