The Parry Company's breakeven point in units is 20,000.Assuming that variable costs are 30% and fixed costs are $100,000,what is the company's projected operating income if sales are $750,000?

Question

Quizplus · Accepted Answer

The correct answer is A because the company's projected operating income is $425,000. This is calculated by subtracting the variable costs of $225,000 (30% of $750,000) and the fixed costs of $100,000 from the sales of $750,000.

The Parry Company's Breakeven Point in Units Is 20,000