Question
Putnam Company Below is an income statement for Putnam Company: Sales $600,000 Variable costs (150,000) Contribution margin $450,000 Fixed costs (300,000) Profit before taxes $150,000
Putnam Company
Below is an income statement for Putnam Company:
| Sales | $600,000 |
| Variable costs | (150,000) |
| Contribution margin | $450,000 |
| Fixed costs | (300,000) |
| Profit before taxes | $150,000 |
If we assume that there is no change in fixed costs, what will be the expected net income on sales of $850,000?
A.
$337,500
B.
$325,000
C.
$415,325
D.
$550,000
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
7th Edition
013213683X, 978-0132136839
