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During its most recent fiscal year, Raphael Enterprises sold 290,000 electric screwdrivers at a price of $17.70 each. Fixed costs amounted to $841,000 and pretax
During its most recent fiscal year, Raphael Enterprises sold 290,000 electric screwdrivers at a price of $17.70 each. Fixed costs amounted to $841,000 and pretax income was $1,131,000. What amount should have been reported as variable costs in the company's contribution margin income statement for the year in question?
Multiple Choice
- $4,002,000.
- $1,972,000.
- $3,161,000.
- $2,320,000.
- $5,133,000.
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