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Free_Kalibri [48]
3 years ago
5

For Sheridan Company, sales is $1200000, fixed expenses are $340000, and the contribution margin ratio is 36%. What is net incom

e?
Business
1 answer:
Maslowich3 years ago
7 0

Answer:

the net income is $92,000

Explanation:

The computation of the net income is shown below:

Net income = Contribution margin - fixed expenses

where,

Contribution margin is

= Sales × contribution margin ratio

= $1,200,000 × 36%

= $432,000

And, the fixed expenses is $340,000

So, the net income is

= $432,000 - $340,000

= $92,000

hence, the net income is $92,000

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labor input      pairs of jeans      marginal physical     value of marginal

                       per day                product                     physical product

0                          0                          0                               0

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4                         68                         12                            $360

5                         74                          6                            $180

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7                         76                          0                                0

8                         74                         -2                            -$60

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