New Rock,Inc.sells video games it has purchased from a local distributor.The following static budget is based on sales of 8,000 games.However,New Rock only sold 7,800 games during the year.Fixed costs are 30% of total operating expenses
$\begin{array}{lr}
\text { Sales } & \$ 512,000 \
\text { Cost of goods sold variable } & \underline{230,000} \
\text { Gross margin } & 282,000 \
\text { Operating expenses } & \underline{220,000} \
\text { Net income } & \underline{\underline{\$ 62,000}}
\end{array}$

Question

New Rock,Inc.sells video games it has purchased from a local distributor.The following static budget is based on sales of 8,000 games.However,New Rock only sold 7,800 games during the year.Fixed costs are 30% of total operating expenses
 $\begin{array}{lr}
\text { Sales } & \$ 512,000 \
\text { Cost of goods sold variable } & \underline{230,000} \
\text { Gross margin } & 282,000 \
\text { Operating expenses } & \underline{220,000} \
\text { Net income } & \underline{\underline{\$ 62,000}}
\end{array}$

Quizplus · Accepted Answer

The Answer of New Rock,Inc.sells video games it has purchased from a local distributor.The following static budget is based on sales of 8,000 games.However,New Rock only sold 7,800 games during the year.Fixed costs are 30% of total operating expenses
 $\begin{array}{lr}
\text { Sales } & \$ 512,000 \
\text { Cost of goods sold variable } & \underline{230,000} \
\text { Gross margin } & 282,000 \
\text { Operating expenses } & \underline{220,000} \
\text { Net income } & \underline{\underline{\$ 62,000}}
\end{array}$