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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) $306,000 Variable costs 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) $306,000 Variable costs 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.

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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QUESTION: Gaudy Inc. produces and sells a single product. The company has provided its contribution format income statement for May. Sales (3,600 units) $306,000 Variable costs 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) $306,000 Variable costs 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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