What will be Sultan 's monthly operating income if 3,700 units are sold each month?

Question

Quizplus · Accepted Answer

To calculate the monthly operating income, we need to use the formula:
Monthly operating income = (number of units sold * contribution margin per unit) - fixed expenses

Given:
- Number of units sold = 3,700
- Contribution margin per unit = $8
- Fixed expenses = $13,100

Substituting the values in the formula, we get:
Monthly operating income = (3,700 * 8) - 13,100 = $22,600 - $13,100 = $9,500

Therefore, the monthly operating income for Sultan will be $9,500 if 3,700 units are sold each month.

However, none of the answer choices match with the calculated answer. The closest answer choice is (B) $31,000, but this is not the correct answer.

What Will Be Sultan 'S Monthly Operating Income If 3,700