If the company sells 4,200 units, its net operating income should be closest to:

A) $17,600
B) $23,009
C) $25,200
D) $2,000

Question

If the company sells 4,200 units, its net operating income should be closest to:A) $17,600B) $23,009C) $25,200D) $2,000

Tania Herrera · Accepted Answer

Final Answer : A, Explanation :  Selling price per unit = $266,800 ÷ 4,600 units = $58 per unitVariable expense per unit = $179,400 ÷ 4,600 units = $39 per unitUnit CM = $58 per unit - $39 per unit = $19 per unitProfit = Unit CM × Q - Fixed expenses= $19 per unit × 4,200 units - $62,200 = $79,800 - $62,200 = $17,600Reference: CHO6-Ref2Wight Corporation has provided its contribution format income statement for June.The company produces and sells a single product.

If the company sells 4,200 units, its net operating income should be closest to:

A) $17,600
B) $23,009
C) $25,200
D) $2,000

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