Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 3 - Cost-Volume-Profit Analysis - Assignment Material - Problems - Page 103: 3-44(2)

Answer

Operating Income = 340,000 - 255,000 = 85,000

Work Step by Step

Total Contribution Margin = Weighted Average Contribution Margin $\times$ Total Units Sold Total Contribution Margin = 1.70 $\times$ 200,000 units = 340,000 Operating Income = Total Contribution Margin - Fixed Costs
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