Given that the variable expenses amount to $50,000 and the fixed expenses total $30,000, what is the resulting operating income?

Multiple choice question for Cost Volume Profit Analysis. Select an option, then review the explanation below.

Explanation

The operating income is calculated by subtracting the total costs (variable plus fixed) from the revenue. Here, the correct operating income is $20,000.

Practice related questions from the same subject.

1.What is obtained when the fixed costs are divided by the contribution margin per unit?
2.Given a contribution margin ratio of 30% and a selling price of $5,000, what is the contribution margin amount for each unit?
3.Given a contribution margin of $13,000 and total variable costs amounting to $7,000, what is the total revenue?
4.Given a selling price of $5000 and a contribution margin per unit of $1000, what is the contribution margin percentage?
5.Given a revenue of $15,000, variable costs totaling $5,000, and fixed costs amounting to $2,000, what is the operating income?

Given that the variable expenses amount to $50,000 and the fixed expenses total $30,000, what is the resulting operating income?

Explanation

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