Palmer Corporation has fixed expenses of $240,000,and a unit sales price of $75.Their variable cost per unit is $40.If they sell 8,000 posters,their operating income is a:

Name: Palmer Corporation has fixed expenses of $240,000,and a unit sales price of $75.Their variable cost per unit is $40.If they sell 8,000 posters,their operating income is a:
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Question

Quizplus · Accepted Answer

Operating income = (Sales - Variable costs - Fixed costs)= (8,000 x $75) - (8,000 x $40) - $240,000= $600,000 - $320,000 - $240,000= $40,000

Palmer Corporation Has Fixed Expenses of $240,000,and a Unit Sales