Question

The following information is for the Jeffries​ Corporation: Product​ A: Revenue $9.00 Variable Cost $5.00 Product​ B: Revenue $32.00 Variable Cost $14.00 Total fixed costs $228,000 What is the operating income of Jeffries​ Corporation, assuming actual sales total 35,600 ​units, and the sales mix is three units of Product A and one unit of Product​ B? A. $525,100 B. $495,000 C. $ 39,000 D. $ 267, 000

Answer 1

	Product A	Product B	Total
Sales Unit with ratio of 3:1	26,700.00	8,900.00	35,600.00
Sales	$ 240,300.00	$ 284,800.00	$ 525,100.00
Variable Cost	$ 133,500.00	$ 124,600.00	$ 258,100.00
Contribution Margin	$ 106,800.00	$ 160,200.00	$ 267,000.00
Fixed Cost			$ 228,000.00
Net Income			$    39,000.00