Mathematics · Commercial Mathematics
Chair Co produces and sells a single product whose variable cost is $6 per unit. Fixed costs have been absorbed over the normal level of activity of 200,000 units and have been calculated as $2 per unit. The current selling price is $10 per unit. How much profit is made under marginal costing if the company sells 250,000 uni ts?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$1,000,000
- 2$900,000
- 3$600,000✓
- 4$500,000
Correct answer
$600,000
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