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Ghella [55]
3 years ago
13

egas Company has the following unit costs: Variable manufacturing overhead $25 Direct materials 20 Direct labor 19 Fixed manufac

turing overhead 12 Variable marketing and administrative 7 Vegas produced and sold 10,000 units. If the product sells for $100, what is the net income using a contribution margin income statement
Business
1 answer:
matrenka [14]3 years ago
6 0

Answer:

$290,000

Explanation:

Calculation for what is the net income using a contribution margin income statement

Using this formula

Net income=(Product sells-Variable manufacturing overhead --Direct materials -Direct labor -Variable marketing and administrative)*Units sold

Let plug in the formula

Net income=($100 – $25 – $20 – $19 – $7) ×$10,000

Net income=$29×$10,000

Net income= $290,000

Therefore the net income using a contribution margin income statement will be $290,000

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17.30%

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dimulka [17.4K]

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<h3>Option (B) is correct</h3>

<u>Explanation:</u>

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3 0
3 years ago
Flexible budgets Group of answer choices are static budgets that have been revised for changes in price(s). accommodate changes
Varvara68 [4.7K]

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Explanation:

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