The market risk premium is computed by: adding the risk-free rate of return to the inflation rate. adding the risk-free rate of
1 answer:
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Answer:
$1,000,000
Explanation:
The computation is shown below:
<u> Particulars Indoors Model Outdoors Model Total </u>
No of Units
(21,050 in ratio 2:3) 8,420 12,630 21,050
Sales 1,263,000 2,778,600 4,041,600
Less: Variable costs 168,400 505,200 673,600
Contribution margin 1,094,600 2,273,400 3,368,000
Less: Fixed costs
(2,160,000 + 208,000) 2,368,000
Operating Income 1,000,000
