UNIT 3 QUIZ
Question 13. Question : Stylish Sitting is a retailer of office
chairs located in San
Francisco, California. Due to increased market
competition, the
CFO of Stylish Sitting has grown worried about the firm's
upcoming income stream. The CFO asked you to use the
company
financial information provided below.
Sales Price $75.00
Per Unit Variable Costs:
Invoice Cost 41.70
Sales Commission 18.30
Total Per Unit Variable Cost $60.00
Fixed Costs:
Advertising $ 56,000
Rent 78,000
Salaries 226,000
Total Annual Fixed Costs $360,000
If 40,000 office chairs were sold, Stylish Sitting's operating
income would be: