Falquez Company sells three products: R, S, and T. Data for activity of Falquez Company during July are as follows: Common fixed expenses for July amounted to $90,000.
-Net operating income for the company was:
A)$166,000
B)$256,000
C)$334,000
D)$46,000

Question

Falquez Company sells three products: R, S, and T. Data for activity of Falquez Company during July are as follows: Common fixed expenses for July amounted to $90,000.
-Net operating income for the company was:
A)$166,000 
B)$256,000 
C)$334,000 
D)$46,000

Quizplus · Accepted Answer

Contribution margin = CM ratio F1F1F1S1F1F1F10 Sales = 0.32 F1F1F1S1F1F1F10 $800,000 = $256,000
Net operating income = Contribution margin - Traceable fixed expenses - Common fixed expenses
= $256,000 - $120,000 - $90,000 = $46,000

Falquez Company Sells Three Products: R, S, and T