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saw5 [17]
2 years ago
5

A firm operated at 80% of capacity for the past year, during which fixed costs were $198,000, variable costs were 66% of sales,

and sales were $1,082,000. Operating profit was a.$367,880 b.$714,120 c.$169,880 d.$135,904
Business
1 answer:
zubka84 [21]2 years ago
7 0

Answer: $169,880

Explanation:

Operating profit for a company is simply its sales less its fixed costs and variable costs:

Operating profit = Sales revenue - Variable costs - Fixed costs

Variable costs:

= 66% * 1,082,000

= $714,120

Operating profit:

= 1,082,000 - 714,120 - 198,000

= $169,880

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