Cando Manufacturing Makes Lamps That Retail at $200 Each

question 80

Multiple Choice

Cando Manufacturing makes lamps that retail at $200 each. The unit variable cost is $120, and the fixed costs are $720,000 per year. Cando can produce a maximum of 2,000 lamps per month. What is the monthly net income if Cando operates at 60% capacity?

• A) $44,000
• B) $84,000
• C) $36,000
• D) $52,000
• E) $28,000