Answer:
Variable costs=$3,876,000
Explanation:
Given Data:
Fixed costs amounted=$1,156,000
pretax income=$1,496,000.
Units Sold=340,000
Price of each unit sold=$19.20
Required::
Variable costs in the company's contribution margin income statement for the year =?
Solution:
Pretax Income=Revenue-Fixed costs-Variable costs
Revenue=Units Sold*Price of each unit sold
Revenue=340,000*$19.20
Revenue=$6,528,000
Pretax Income=Revenue-Fixed costs-Variable costs
$1,496,000=$6,528,000-$1,156,000-Variable costs
Variable costs=$6,528,000-$1,156,000-$1,496,000
Variable costs=$3,876,000
