Palmer Corporation Has Fixed Expenses of $240,000, and a Unit

question 72

Multiple Choice

Palmer Corporation has fixed expenses of $240,000, and a unit sales price of $75. Their variable cost per unit is $40. If they sell 8,000 posters, their operating income is a

• A) gain of $40,000.
• B) loss of $520,000.
• C) gain of $680,000.
• D) gain of $80,000.

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