Question
Amount Per Unit Sales $ 300,000 $ 40 Variable expenses 120,000 16 Contribution margin 180,000 $ 24 Fixed expenses 60,000 Net operating income $ 120,000
| Amount | Per Unit | |||||||||
| Sales | $ | 300,000 | $ | 40 | ||||||
| Variable expenses | 120,000 | 16 | ||||||||
| Contribution margin | 180,000 | $ | 24 | |||||||
| Fixed expenses | 60,000 | |||||||||
| Net operating income | $ | 120,000 | ||||||||
If the company decides to pay a sales commission of 2.5% for each unit sold above the break-even point, what net operating income will it earn if it sells 6,600 units?
Multiple Choice
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$96,800
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$91,800
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$98,400
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$94,300
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Accounting Principles Volume 2
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara A. Trenholm, Valerie A. Kinnear, Joan E. Barlow
6th Canadian Edition
1118557328, 978-1118557327
