Dimitrov Corporation,a company that produces and sells a single product,has provided its contribution format income statement for July. If the company sells 6,900 units,its net operating income should be closest to:

Question

Dimitrov Corporation,a company that produces and sells a single product,has provided its contribution format income statement for July.  If the company sells 6,900 units,its net operating income should be closest to:

Quizplus · Accepted Answer

Variable expenses per unit = Variable expenses F1F1F1S1F1F1F10 Quantity sold
= $175,000 F1F1F1S1F1F1F10 7,000 units = $25 per unit
Selling price per unit = Sales F1F1F1S1F1F1F10 Quantity sold
= $315,000 F1F1F1S1F1F1F10 7,000 units = $45 per unit
Unit CM = Selling price per unit - Variable expenses per unit
= $45 per unit - $25 per unit = $20 per unit
Profit = Unit CM F1F1F1S1F1F1F10 Q - Fixed expenses
= ($20 per unit F1F1F1S1F1F1F10 6,900 units)- $103,500 = $138,000 - $103,500 = $34,500

Dimitrov Corporation,a Company That Produces and Sells a Single Product,has