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A firm operated at 90% of capacity for the past year, during which fixed costs were $420,000, variable costs were 40% of sales, and sales were $1,000,000. Operating income was:____________.
a. $420,000
b. $980,000
c. $180,000
d. $1,080,000

Respuesta :

Answer:

A

Explanation:

Parrain

Based on the fixed and variable costs, as well as the sales amount, the operating income was C. $180,000.

What was the operating income?

This can be found as:

= Sales - Variable costs - Foxed costs

Solving gives:

= 1,000,000 - (40% x 1,000,000) -420,000

= 1,000,000 - 400,000 - 420,000

= $180,000

Find out more on operating income at https://brainly.com/question/25895372.

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