Answer the following questions using the information below A

Answer the following questions using the information below: Alex Furniture sells a table for $850. His fixed costs are $25,000, while his variable costs are $500 per table. He currently plans to sell 175 tables this month.

Solution

Sales(175*850) $148750 Less:Variable cost(175*500) $87500 Contribution margin $61250 Less:Fixed cost $25000 Operating income $36250.