Contessa Corporation has fixed expenses of $200,000, and a unit sales price of $75. Its variable cost per unit is $60. If it sells 33,800 posters, its operating income is a

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To calculate the operating income, first, find the contribution margin per unit, which is the sales price per unit minus the variable cost per unit: $75 - $60 = $15. Then, multiply the contribution margin per unit by the number of units sold: $15 * 33,800 = $507,000. Finally, subtract the fixed expenses from the total contribution margin to find the operating income: $507,000 - $200,000 = $307,000.

Contessa Corporation Has Fixed Expenses of $200,000, and a Unit