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A company’s CVP income statement included sales of 5,000 units, a selling price of $100, variable expenses of $60 per unit, and fixed expenses of $110,000. What is net income? *

Respuesta :

Samawati

Answer:

$90,000

Explanation:

calculating profit using contribution margin method;

units sold: 5000

selling price: $100

variable costs: $60

fixed cost: $110,000

conribution margin per item= selling price- variable costs

                                               =$100- $60

                                                =$40

Total CMargin = Contribution margin per unit x total units sold

                   = $40X5000

                   = $200,000

net Income = total conribution margin - fixed costs

                   = $200,000- $110,00

                    = $90,000

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