Accouting Question 2b

Accounting
Tutor: None Selected Time limit: 1 Day

Marks Corporation, a company that produces and sells a single product, has provided its contribution format income statement for July.

  Sales (6,700 units) $402,000  
  Variable expenses

268,000  

  Contribution margin 134,000  
  Fixed expenses

103,500  

  Net operating income

$30,500  

If the company sells 6,600 units, its net operating income should be closest to:

Jun 22nd, 2015

Thank you for the opportunity to help you with your question!

Sales revenue per unit: 402,000/6700= $60 per unit

Variable expense = 268,000/6700= $40 / unit

For 6600,. we would have (60*6600) - (40*6600) - 103500 = 28,500 :)

Please let me know if you need any clarification. I'm always happy to answer your questions.
Jun 22nd, 2015

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