During its most recent fiscal year, Dover, Inc. had total sales of $3,200,000. Contribution margin amounted to $1,500,000 and pretax income was $400,000.
- What amount should have been reported as fixed costs in the company's contribution margin income statement for the year in question?
A) $1,900,000.
B) $2,800,000.
C) $1,100,000.
D) $1,300,000.
E) $1,700,000.

Question

Quizplus · Accepted Answer

Fixed costs can be calculated by subtracting pretax income from the contribution margin: $1,500,000 - $400,000 = $1,100,000.

During Its Most Recent Fiscal Year, Dover, Inc