The Following Income Statement Was Produced When Volume of Sales

question 50

Multiple Choice

The following income statement was produced when volume of sales was at 400 units. $$\begin{array} { | l | l r | } \hline \text { Sales Revenue } & \$ & 2,000 \\\hline \text { Variable Cost } & & 1,200 \\\hline \text { Contribution Margin } & \$ & 800 \\\hline \text { Fixed Cost } & & 300 \\\hline \text { Net Income } & \$ & 500 \\\hline\end{array}$$ If volume reaches 500 units, net income will be:

• A) $625
• B) $1,800
• C) $700
• D) None of these

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