Ace Corporation's Variable Costs Are Equal to 43% of Sales

question 17

Multiple Choice

Ace Corporation's variable costs are equal to 43% of sales revenue. Their fixed costs per month are $600,000. Calculate the net income on sales of $2,000,000 per month.

• A) $540,000
• B) $260,000
• C) $798,000
• D) $1,140,000
• E) $280,000

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Definitions:

Dog Food

A type of food specifically formulated and intended for consumption by dogs, made from various ingredients.

Forearm

The part of the arm between the wrist and the elbow.

Elbow

The elbow is the joint that connects the upper arm to the forearm, allowing for the bending and straightening of the arm.

Wrist

The joint connecting the forearm to the hand, consisting of eight small bones and allowing for a wide range of movement.