Question

In 2019, Crane Company sold 2000 units at $600 each. Variable expenses were $420 per unit, and fixed expenses were $240000. What was Crane’s 2019 net income?

Answer 1

Crane's 2019 Net income is $120,000

Step-by-step explanation:

Given the above information, we can get Crane's net income as shown below.

Sales $1,200,000

(2,000 units × $600)

Less: Variable expenses ($840,000)

(2,000 units × $420)

Contribution margin $360,000

Less: Fixed expenses ($240,000)

Net income. $120,000