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The fred oxpenoes of Gregs Snowboards are $750,00 Theselling price far one snowboardis $170 The variable cost per un i 568 I
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Answer #1

Fixed Expenses are $750,000

Selling price for one snowboard is $170

Variable cost per unit is $68

If the company sells 8,900 snowboards its operating income is a gain of $157,800

Snowboards produced and sold 8,900 snowboards
Sales 1,513,000 8,900*170
Less: Variable Costs 605,200 8,900*68
Contribution Margin (Sales-Variable costs) 907,800
Less: Fixed Costs 750,000
Net operating Income/(loss) 157,800

Answer is B.

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