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QUESTION: Gaudy Inc. produces and sells a single product. The company has provided its contribution format income statement for May. Sales (3,600 units) Variable costs $306,000 180,000 Contribution margin 126,000 Fixed costs Operating profit 104,700 $21,300 If the company sells 3,400 units, its operating profit should be closest to: A. $13,117. B. $20,117. C. $7,000. D. $14,300.

QUESTION: Gaudy Inc. produces and sells a single product. The company has provided its contribution format income statement for May. Sales (3,600 units) Variable costs $306,000 180,000 Contribution margin 126,000 Fixed costs Operating profit 104,700 $21,300 If the company sells 3,400 units, its operating profit should be closest to: A. $13,117. B. $20,117. C. $7,000. D. $14,300.

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter2: Basic Managerial Accounting Concepts
Section: Chapter Questions
Problem 4MCQ
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QUESTION: Gaudy Inc. produces and sells a single product. The company has provided its contribution format income statement for May. Sales (3,600 units) Variable costs $306,000 180,000 Contribution margin 126,000 Fixed costs Operating profit 104,700 $21,300 If the company sells 3,400 units, its operating profit should be closest to: A. $13,117. B. $20,117. C. $7,000. D. $14,300.
Transcribed Image Text:QUESTION: Gaudy Inc. produces and sells a single product. The company has provided its contribution format income statement for May. Sales (3,600 units) Variable costs $306,000 180,000 Contribution margin 126,000 Fixed costs Operating profit 104,700 $21,300 If the company sells 3,400 units, its operating profit should be closest to: A. $13,117. B. $20,117. C. $7,000. D. $14,300.
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