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djyliett [7]
3 years ago
7

Llywelyn, Inc. reports the following information for​ July: Sales Revenue $ 1 comma 000 comma 000 Variable Costs 200 comma 000 O

perating Income 380 comma 000 What is the total fixed cost using variable​ costing? A. $ 420 comma 000 B. $ 800 comma 000 C. $ 180 comma 000 D. $ 580 comma 000
Business
1 answer:
trapecia [35]3 years ago
6 0

Answer:

A. $ 420,000

Explanation:

We have to find the missing information

Sales revenues            1,000,000

variable cost              <u>    (200,000)</u>

Contribution Margin       800,000

Fixed Cost                <u>            X         </u>

Operating Income          380,000

Contribution margin - operating income = fixed cost

$800,000 - $380,000 = fixed cost

fixed cost =   $420,000

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