Starwalt Corporation produces and sells a single product. The company has provided its contribution format income statement for March.
-If the company sells 7,300 units,its net operating income should be closest to:

Question

Starwalt Corporation produces and sells a single product. The company has provided its contribution format income statement for March. 
-If the company sells 7,300 units,its net operating income should be closest to:

Quizplus · Accepted Answer

Selling price per unit = $546,700 F1F1F1S1F1F1F10 7,700 units = $71 per unit
Variable expense per unit = $238,700 F1F1F1S1F1F1F10 7,700 units = $31 per unit
Unit CM = $71 per unit - $31 per unit = $40 per unit
Profit = Unit CM F1F1F1S1F1F1F10 Q - Fixed expenses
= $40 per unit F1F1F1S1F1F1F10 7,300 units - $232,900 = $292,000 - $232,900 = $59,100

Starwalt Corporation Produces and Sells a Single Product