Galose Coffee Company sold 7,000 units in October at a sales price of $45 per unit. The variable cost is $20 per unit. The monthly fixed costs are $8,000. What is the operating income earned in October?
A) $175,000
B) $315,000
C) $167,000
D) $140,000
C .C)
Sales Revenue ($45 x 7,000 ) $315,000
Less: Variable Costs ($20 x 7,000 ) (140,000 )
Contribution margin 175,000
Less: Fixed costs (8,000 )
Operating income $167,000
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