46. During its most recent fiscal year, Raphael Enterprises sold 300,000 electri

Question

46.

During its most recent fiscal year, Raphael Enterprises sold 300,000 electric screwdrivers at a price of $18.00 each. Fixed costs amounted to $900,000 and pretax income was $1,200,000. What amount should have been reported as variable costs in the company's contribution margin income statement for the year in question?

$4,200,000.

$2,400,000.

$5,400,000.

$3,300,000.

$2,100,000.

During its most recent fiscal year, Raphael Enterprises sold 300,000 electric screwdrivers at a price of $18.00 each. Fixed costs amounted to $900,000 and pretax income was $1,200,000. What amount should have been reported as variable costs in the company's contribution margin income statement for the year in question?

Explanation / Answer

Units 300000 Selling Price $18 Sales 5400000 Net Income 1200000 Fixed Cost 900000 Contribution 2100000 Variable Cost = Sales- Contribution 5400000-2100000 Variable Cost = $3,300,000 The correct option is D. $ 3300000

Related Questions

Navigate

• Browse (All)
• Browse 4
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.