Question

Sut Help SEve&Et aved During ts mst recent tiscal year, Raphael Enterprises sold 250,000 electric screwdvers at a price of $6 50 each Foced costs amounted to S625,000 and pretx ncome was $575.000 Whet amount should heve been reported as vanable costts in the company's contribution margin income statement for the year in question?

Answer 1

Ans. : Profit = Sales- Variable cost- Fixed cost

According to this question,

Sales = 2,50,000*16.50= 41,25,000 dollar

Fixed cost= 6,25,000 dollar

Income = 5,75,000 dollar

Variable cost= 41,25,000-6,25,000-5,75,000= 29,25,000 dollars.