Question

Robusta Coffee Importers sold 6 comma 000 units in October at a sales price of $ 35 per unit. The variable cost is $ 15 per unit. The monthly fixed costs are $ 10 comma 000. What is the operating income earned in​ October?

Answer 1

Answer:

Operating Income= $110,000

Explanation:

Giving the following information:

Robusta Coffee Importers sold 6,000 units in October at a sales price of $35 per unit. The variable cost is $ 15 per unit. The monthly fixed costs are $10,000.

The operating income is the difference between the contribution margin and the fixed costs:

Contribution margin= selling price - unitary variable cost

Operating income= Total contribution margin - fixed costs

OI= 6,000*(35 - 15) - 10,000= $110,000