At a break-even point of 1,000 units sold, White Corporation's Sales are $16,000; variable expenses are $12,000; contribution margin is $4,000; and fixed expenses are $4,000.  Unit sales price is $16. Unit variable expense is $12, and unit contribution margin is $4.  What will the Corporation's net operating income be at a volume of 1,001 units?     A. $604   B. $16   C. $12   D. $4   E. $8,000

Financial & Managerial Accounting
13th Edition
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter19: Cost Behavior And Cost-Volume-Profit Analysis
Section: Chapter Questions
Problem 19.17EX
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QUESTION 52

  1. At a break-even point of 1,000 units sold, White Corporation's Sales are $16,000; variable expenses are $12,000; contribution margin is $4,000; and fixed expenses are $4,000.  Unit sales price is $16. Unit variable expense is $12, and unit contribution margin is $4.  What will the Corporation's net operating income be at a volume of 1,001 units?  

      A.

    $604

      B.

    $16

      C.

    $12

      D.

    $4

      E.

    $8,000

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