Assume the following amounts: Total fixed costs $48,000
Sales price per unit $46
Variable cost per unit $32
If sales revenue per unit increase to $48 and 12,000 units are sold, the operating income for the period will be

Question

Quizplus · Accepted Answer

The operating income can be calculated using the formula: Operating Income = (Sales price per unit - Variable cost per unit) * Units sold - Fixed costs. With the new sales price of $48, the calculation is: ($48 - $32) * 12,000 - $48,000 = $16 * 12,000 - $48,000 = $192,000 - $48,000 = $144,000.

Assume the Following Amounts: Total Fixed Costs $48,000