Question

Bonita’s CVP income statement included sales of 5400 units, a selling price of $ 100, variable...

Bonita’s CVP income statement included sales of 5400 units, a selling price of $ 100, variable expenses of $ 60 per unit, and fixed expenses of $ 110000. Net income is

$ 214000.

$ 106000.

$ 540000.

$ 216000.

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Homework Answers

Answer #2
  • Correct Answer = Option #2: $ 106,000
  • Working

Sales Revenue [5400 units x $ 100]

$              540,000

Less: Variable cost [5400 units x $ 60]

$              324,000

    Contribution margin

$              216,000

Less: Fixed Cost

$              110,000

Net Income

$              106,000 = Answer

answered by: anonymous
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