Jupiter Company sells glass vases at a wholesale price of $3 per unit.The variable cost of manufacture is $1.75 per unit.The fixed costs are $7,500 per month.It sold 5,500 units during this month.Calculate Jupiter's operating income (loss)for this month.

Question

Quizplus · Accepted Answer

Operating income = (Sales - Variable costs - Fixed costs)= (5,500 x $3 - 5,500 x $1.75 - $7,500)= $16,500 - $9,625 - $7,500= -$625

Jupiter Company Sells Glass Vases at a Wholesale Price of $3