Question

Roosevelt Corporation has a weighted average unit contribution margin of $60 for its two products, Standard and Supreme. Expected sales for Roosevelt are 30,000 Standard and 70,000 Supreme. Fixed expenses are $1,800,000 At the expected sales level, Roosevelt's net income will be O a 1,200,000 O b. 2.200,000 O c. 3.200,000 O d. 4,200,000

Answer 1

Answer

d. $ 4,200,000

Calculations:

Sales units (70,000 + 30,000)	100,000
(X) Contribution per unit	$              60
(=)Total contribution	$ 6,000,000
(-) Fixed Cost	$ 1,800,000
(=) Net income	$ 4,200,000

In case of any doubt, please comment.