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RDWMNE769 Corp. sells a single product. Selling price per unit $12 Variable expense per unit $2.00 Current Sales in units 16,000 RDWMNE769's current net operating income is equal to 0.31 of current sales. Q. What is RDWMNE769's fixed cost? A. $

RDWMNE769 Corp. sells a single product. Selling price per unit $12 Variable expense per unit $2.00 Current Sales in units 16,000 RDWMNE769's current net operating income is equal to 0.31 of current sales. Q. What is RDWMNE769's fixed cost? A. $

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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RDWMNE769 Corp. sells a single product. Selling price per unit $12 Variable expense per unit $2.00 Current Sales in units 16,000 RDWMNE769's current net operating income is equal to 0.31 of current sales. Q. What is RDWMNE769's fixed cost? A. $
Expert Solution
Fixed Costs:

.The fixed costs do not change with a change in the production level or activity level within the relevant range. The fixed cost could be computed by using the cost-profit equation as follows: -

Sales Value - Variable Costs - Fixed Cost = Net Profit

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