Question

If selling price per unit is $45, variable costs per unit are $30, total fixed costs are $21,000, the tax rate is 30%, and the company sells 6,000 units, net income is O A $69,000 OB. $63,000 OC. $9,000 OD. 548,300

Answer 1

D. $ 48,300

Contribution format income statement at the level of 6,000 units
		Per Unit	Total
Sales		$     45.00	$       2,70,000
Variable cost		$     30.00	$       1,80,000
Contribution Margin		$     15.00	$           90,000
Fixed costs			$           21,000
Profit before tax			$           69,000
Tax Expense @ 30%			$           20,700
Net Income			$           48,300