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During its most recent fiscal year, Dover, Inc. had total sales of $3,060,000. Contribution margin amounted to $1,430,000 and pretax income was $295,000. What amount should have been reported as fixed costs in the company's contribution margin income statement for the year in question?

Respuesta :

Answer:

$1,135,000

Explanation:

Data provided as per the question

Contribution = $1,430,000

Income = $295,000

The calculation of fixed cost is shown below:-

Income = Contribution - Fixed cost

Fixed cost = Contribution - Income

= $1,430,000 - $295,000

= $1,135,000

Therefore, for computing fixed cost we simply deduct Income from contribution.

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