Fill in the Blank QuestionFill in the blank question.A company produces a product with a contribution margin per unit of $36. If the company incurs $62,000 in total fixed costs and expects to sell 2,500 units their income would be $.
Question
Fill in the Blank QuestionFill in the blank question.A company produces a product with a contribution margin per unit of 62,000 in total fixed costs and expects to sell 2,500 units their income would be $.
Solution
To solve this, we first need to calculate the total contribution margin, which is the contribution margin per unit multiplied by the number of units sold.
Step 1: Calculate total contribution margin 90,000
Step 2: Subtract the total fixed costs from the total contribution margin to find the income.
62,000 (total fixed costs) = $28,000
So, the company's income would be $28,000.
Similar Questions
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