Bumper earned a net income of $72,000 and has fixed costs of $36,000. Bumper sold 11,000 units

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Bumper earned a net income of $72,000 and has fixed costs of $36,000. Bumper sold 11,000 units for $30 each and has a 40% contribution margin ratio. What were Bumper’s operating income and tax rate?

a). $96,000; 25%

b). $120,000; 40%

c). $270,000; 27%

d). $162,000; 45%rn

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Cornerstones of Managerial Accounting

ISBN: 978-0324660135

3rd Edition

Authors: Mowen, Hansen, Heitger

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Posted Date: Jan 12, 2021 02:06 PM

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Bumper earned a net income of $72,000 and has fixed costs of $36,000. Bumper sold 11,000 units

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Cornerstones of Managerial Accounting

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