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.$550,000
C.$325,000
D.$415,325
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Management Accounting
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
6th Canadian edition
013257084X, 1846589207, 978-0132570848
