Answer:
Net operating income= 167,000
Step-by-step explanation:
Giving the following information:
Robusta Coffee Importers sold 7000 units in October at a sales price of $45 per unit. The variable cost is $20 per unit. The monthly fixed costs are $8000.
Under the contribution margin income statement, the structure is as follow:
Sales=
Total variable cost= (-)
=Contribution margin=
Fixed costs= (-)
=Net operating income=
In this case:
Sales= 7,000*45= 315,000
Total variable cost= (7,000*20)= (140,000)
Contribution margin= 175,000
Fixed costs= (8,000)
Net operating income= 167,000