A firm operated at 90% of capacity for the past year, during which fixed costs were $420,000, variablecosts were 40% of sales, and sales were $1,000,000. Operating profit was:Answera. $980,000b. $420,000c. $1,080,000d. $180,000

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A firm operated at 90% of capacity for the past year, during which fixed costs were $420,000, variable costs were 40% of sales, and sales were $1,000,000. Operating profit was: Answer a. $980,000 b. $420,000 c. $1,080,000 d. $180,000