During the current year, Goldblum Co. sold 160,000 units of its product at a selling price of $40. The variable cost per unit was $30, and Goldblum reported net income for the year of $220,000. What was the amount of Goldblum's fixed costs for the year?
What will be an ideal response?
Answers will vary
Contribution margin per unit = $40 - $30 = $10
Total contribution margin = $10 × 160,000 = $1,600,000
Total contribution margin - fixed costs = net income
Fixed costs = total contribution margin - net income
Fixed costs = $1,600,000 - 220,000 = $1,380,000
You might also like to view...
If a marketing manager segments the market into culture-oriented, sports-oriented, or outdoor-oriented groups, he or she is segmenting on the basis of ________
A) loyalty status B) behavioral occasions C) user status D) psychographic lifestyle E) readiness stage
Which of the following relationships between category of intangibles and amortization is false? Set Category Amortize I. Intangible assets with a finite life Yes II. Intangible assets with an indefinite life No III. Goodwill Yes IV. Internally developed unidentifiable intangibles No ? ?
A) Set I B) Set II C) Set III D) Set IV
A ______ has two or more members, with a clear leader, who perform independent jobs with individual accountability, evaluation, and rewards.
a. team b. group c. committee d. department
Some writers have called the inability to recognize ethical issues while dealing with the financial aspect of business decisions ________.
Fill in the blank(s) with the appropriate word(s).