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XYZ Inc. sells a single product for $10 per unit. Variable production costs are $6 per unit. Fixed overhead costs amount...

XYZ Inc. sells a single product for $10 per unit. Variable production costs are $6 per unit. Fixed overhead costs amount $10,000 per month. Variable selling costs are $1 per unit. Fixed selling costs are $5,000 per month. Last month, the company produced 10,000 units and sold 8,000 units. What was XYZ's net income last month?

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Answer #1
Sales (10*8000) $80000
Less: Variable production costs (6*8000) 48000
Fixed overhead costs amount 10000
Variable selling costs (1*8000) 8000
Fixed selling costs 5000
Net income $9,000
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