Question

Atlas Corporation sells 100 bicycles during a month. The contribution margin per bicycle is $200. The monthly fixed expenses are $8,000. What is the profit from the sale of 100 bicycles

Answer 1

Answer:

$12,000

Explanation:

To calculate the profit for Atlas corporation, we will use the formula below;

Profit = (Contribution margin × Units sold) - Fixed expenses

Given that;

Contribution margin = $200

Units sold = 100

Fixed expenses = $8,000

Profit = [($200 × 100) - $8,000]

Profit = $20,000 - $8,000

Profit = $12,000