Answer:
The net income is "$7600".
Explanation:
The given values are:
Selling Price
= $19
Variable Cost
= $15
Company sells
= 3,300 units
Per unit contribution
= $4
Now,
The total contribution will be:
= [tex]3300\times 4[/tex]
= [tex]13200[/tex]
⇒ Break Even Point = [tex]\frac{Fixed \ cost}{Contribution \ per \ unit}[/tex]
[tex]1400=\frac{Fixed \ cost}{4}[/tex]
[tex]Fixed \ Cost=1400\times 4[/tex]
[tex]=5600[/tex]
Now,
Calculation of the net income will be:
= Contribution - Fixed cost
= [tex]13200-5600[/tex]
= [tex]7600[/tex] (4)
