Use the following information for questions.
Roosevelt Corporation has a weighted-average unit contribution margin of $30 for its two products, Standard and Supreme. Expected sales for Roosevelt are 40,000 Standard and 60,000 Supreme. Fixed expenses are $1,800,000.
-At the expected sales level, Roosevelt's net income will be
A) $(300,000).
B) $ - 0 -.
C) $1,200,000.
D) $3,000,000.

Question

Quizplus · Accepted Answer

Total expected sales revenue:
(40,000 x $30) + (60,000 x $30) = $3,000,000

Total contribution margin:
(40,000 + 60,000) x $30 = $3,000,000

Total fixed expenses: $1,800,000

Net income: Total contribution margin - Total fixed expenses
$3,000,000 - $1,800,000 = $1,200,000

Therefore, the correct answer is C.

Use the Following Information for Questions