Question

Coronado Industries has a weighted-average unit contribution margin of $30 for its two products, Standard and Supreme. Expected sales for Coronado are 60000 Standard and 40000 Supreme. Fixed expenses are $1800000. At the expected sales level, Coronado’s net income will be:_______.

Answer 1

Net income= $1,200,000

Step-by-step explanation:

Giving the following information:

Weighted-average unit contribution margin= $30

Sales= 60,000 + 40,000= 100,000 units

Fixed expenses= $1,800,000

To calculate the net income, we need to use the following formula:

Net income= total contribution margin - fixed costs

Net income= 30*100,000 - 1,800,000

Net income= 1,200,000