Roosevelt Corporation has a weighted-average unit contribution margin of $40 for its two products, Standard and Supreme.Expected sales for Roosevelt are 40,000 Standard and 60,000 Supreme.Fixed expenses are $1,800,000.At the expected sales level, Roosevelt's net income will be
A)$(200,000).
B)$ - 0 -.
C)$2,200,000.
D)$4,000,000.

Question

Quizplus · Accepted Answer

The total contribution margin is (40,000 + 60,000) units * $40 = $4,000,000. Subtracting fixed expenses of $1,800,000 gives a net income of $2,200,000.

Roosevelt Corporation Has a Weighted-Average Unit Contribution Margin of $40