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Vania Rojas
on Dec 01, 2024

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During its most recent fiscal year,Dover,Inc.had total sales of $3,200,000.Contribution margin amounted to $1,500,000 and pretax income was $400,000.What amount should have been reported as fixed costs in the company's contribution margin income statement for the year?

A) $1,900,000.
B) $2,800,000.
C) $1,300,000.
D) $1,100,000.
E) $1,700,000.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business.

Contribution Margin

The amount remaining from sales revenue after variable costs are deducted, indicating how much contributes to covering fixed costs and generating profit.

Pretax Income

The income earned by a business before any taxes have been deducted.

  • Interpret and analyze financial information to make informed business decisions related to sales, costs, and profit.
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Josie GraffDec 07, 2024
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