Wight Corporation has provided its contribution format income statement for June. The company produces and sells a single product.

-If the company sells 9,700 units,its net operating income should be closest to:
A) $57,000
B) $55,000
C) $55,573
D) $58,500

Question

Wight Corporation has provided its contribution format income statement for June. The company produces and sells a single product.
 
-If the company sells 9,700 units,its net operating income should be closest to:
A) $57,000 
B) $55,000 
C) $55,573 
D) $58,500

Quizplus · Accepted Answer

Selling price per unit = $336,000 ÷ 9,600 units = $35 per unit Variable expense per unit = $144,000 ÷ 9,600 units = $15 per unit Unit CM = $35 per unit - $15 per unit = $20 per unit Profit = Unit CM × Q - Fixed expenses = $20 per unit × 9,700 units - $137,000 = $194,000 - $137,000 = $57,000

Wight Corporation Has Provided Its Contribution Format Income Statement for June