A firm operated at 90% capacity for the past year, during whichfixed costs were $320,000, variable costs were 60% of sales, andsales were $1,000,000.Income from Operations was:a. $680,000.b. $80,000.c. $1,320,000.d. $200,000.

Step 1: Introduction to income statementIncome statement is referred to as the financial statement…

Answered: A firm operated at 90% capacity for the…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 3SEQ: Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of...

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A firm operated at 90% capacity for the past year, during which fixed costs were $320,000, variable costs were 60% of sales, and sales were $1,000,000. Income from Operations was: a. $680,000. b. $80,000. c. $1,320,000. d. $200,000.