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ABC Manufacturing produces metal lampposts. The company's income statements for the last two years are given below. The company has no beginning or ending inventories.                                                Last Year       This Year Units sold.                            60,000            85,000 Sales.                                    1,440,000.      2,040,000 Less cost of goods sold.     785,000        1,060,000    Gross margin                        655,000         980,000 Less operating expenses.    237,000        312,000 Net income                            418,000.       668,000 Determine the company's total fixed costs. a) 182,000 b) 125,000 c) 205,700 d) 162,500

ABC Manufacturing produces metal lampposts. The company's income statements for the last two years are given below. The company has no beginning or ending inventories.                                                Last Year       This Year Units sold.                            60,000            85,000 Sales.                                    1,440,000.      2,040,000 Less cost of goods sold.     785,000        1,060,000    Gross margin                        655,000         980,000 Less operating expenses.    237,000        312,000 Net income                            418,000.       668,000 Determine the company's total fixed costs. a) 182,000 b) 125,000 c) 205,700 d) 162,500

FINANCIAL ACCOUNTING
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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ABC Manufacturing produces metal lampposts. The company's income statements for the last two years are given below. The company has no beginning or ending inventories.

                                               Last Year       This Year
Units sold.                            60,000            85,000
Sales.                                    1,440,000.      2,040,000
Less cost of goods sold.     785,000        1,060,000   
Gross margin                        655,000         980,000
Less operating expenses.    237,000        312,000
Net income                            418,000.       668,000

Determine the company's total fixed costs.

a) 182,000
b) 125,000
c) 205,700
d) 162,500

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