during its most recent fiscal year, raphael enterprises sold 270,000 electric screwdrivers at a price of…

during its most recent fiscal year, raphael enterprises sold 270,000 electric screwdrivers at a price of $17.10 each. fixed costs amounted to $729,000 and income was $999,000. what amount should have been reported as variable costs in the companys contribution margin income statement for the year in question?\nmultiple choice\n$4,617,000\n$2,889,000\n$3,618,000\n$2,160,000\n$1,728,000

during its most recent fiscal year, raphael enterprises sold 270,000 electric screwdrivers at a price of $17.10 each. fixed costs amounted to $729,000 and income was $999,000. what amount should have been reported as variable costs in the companys contribution margin income statement for the year in question?\nmultiple choice\n$4,617,000\n$2,889,000\n$3,618,000\n$2,160,000\n$1,728,000

Answer

Explanation:

Step1: Calculate total revenue

Revenue = Price per unit × Number of units sold. Revenue = ( 8.70\times270000=$2349000 )

Step2: Use the profit formula

Profit (Income) = Revenue - Variable costs - Fixed costs. We need to find Variable costs. Rearranging the formula: Variable costs = Revenue - Fixed costs - Income. Variable costs = ( 2349000 - 729000-999000 ) Variable costs = ( 2349000-(729000 + 999000)) Variable costs = ( 2349000 - 1728000=$621000 )

Wait, no, actually, using the contribution - margin income statement formula: Contribution margin=Revenue - Variable costs, and Income = Contribution margin - Fixed costs. So Contribution margin=Income + Fixed costs. Contribution margin=(999000 + 729000=$1728000)

Answer:

($1728000)