Lasseter Corporation has provided its contribution format income statement for August.The company produces and sells a single product. If the company sells 3,900 units,its net operating income should be closest to:

Question

Lasseter Corporation has provided its contribution format income statement for August.The company produces and sells a single product.  If the company sells 3,900 units,its net operating income should be closest to:

Quizplus · Accepted Answer

Selling price per unit = $107,300 ÷ 3,700 units = $29 per unit
Variable expense per unit = $48,100 ÷ 3,700 units = $13 per unit
Unit CM = $29 per unit - $13 per unit = $16 per unit
Profit = (Unit CM × Q)- Fixed expenses
= ($16 per unit × 3,900 units)- $43,400 = $62,400 - $43,400 = $19,000

Lasseter Corporation Has Provided Its Contribution Format Income Statement for August.The