Question

Coronado Industries produces only one product. Monthly fixed expenses are $14000, monthly unit sales are 3000, and the unit contribution margin is $10. How much is monthly net income?

Answer 1

the monthly net income is $16,000

Step-by-step explanation:

The computation of the monthly net income is shown below:

Net income = contribution margin - fixed expenses

where,

Fixed expenses is $14,000

And, the contribution margin is

= Monthly unit sales × unit contribution margin

= 3,000 × $10

= $30,000

So, the monthly net income is

= $30,000 - $14,000

= $16,000

hence, the monthly net income is $16,000