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

Question

Quizplus · Accepted Answer

The operating income can be calculated using the formula: Operating Income = (Sales Price per Unit - Variable Cost per Unit) * Quantity Sold - Fixed Expenses. Plugging in the given values: Operating Income = ($75 - $40) * 8,000 - $240,000 = $35 * 8,000 - $240,000 = $280,000 - $240,000 = $40,000 gain.

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