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Atlas Corporation sells 100 bicycles during a month. The contribution margin per bicycle is $200. The monthly fixed expenses are $8,000. Compute the profit from the sale of 100 bicycles ________.a. $12,000b. $10,000c. $20,000d. $8,000

Respuesta :

Emhicee

Answer:

A, $12,000

Explanation:

Profit is the financial gain as a result of the difference between the selling price of a product and the cost/production cost of the product.

To calculate the profit from the sale of the bicycles, we use the formula

Profit = (marginal cost x quantity of bicycles) - Expenses.

we have,

Profit = ($200 x 100) - $8,000

Profit = $20,000 - $8,000

Profit = $12,000.

Cheers.

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