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The fixed expenses of Gregs Snowboards are 5760.000 The selling price for one snowboard is $180. The variable cont per unit
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Answer #1

Answer) Option D ($194,600)

Calculation:

Fixed cost : $760,000

Fixed cost per unit :$88.37 (760,000/8,600(number of units sold))

Add : Variable cost per unit :$69

(Less) : Selling Price :$180

Operating Income(loss) per Unit :$22.63

Total operating loss : $22.63 multiply 8600(number of units) = $194,618(194,600 rounding off)

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