Fixed Costs Equal $15,000,unit Contribution Margin Equals $25,and the Number

question 163

Multiple Choice

Fixed costs equal $15,000,unit contribution margin equals $25,and the number of units sold equal 1,150.Operating income is ________.

• A) $28,750
• B) $13,750
• C) $15,000
• D) $14,750

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Definitions:

Beginning Inventory

The value of a company's inventory at the start of an accounting period before any purchases or sales have been made.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.

Cost of Goods Sold

The immediate expenses linked to the creation of goods sold by a business, which encompass costs for materials and labor.

Specific Identification

An inventory valuation method that tracks the cost of individual items for the purpose of determining cost of goods sold.