Question: Help asap please, Bennett Windows is a small company that installs windows, Its cost structure is as follows: Selling price from each window installation Variable
Bennett Windows is a small company that installs windows, Its cost structure is as follows: Selling price from each window installation Variable cost of each window installation Annual fixed costs 400 200 $ 200,000 Use (a) the equation method and (b) the contribution method to calculate operating income if Bennett installs 2,200 windows. Use (a) the Equation method to calculate operating income if Bennett installs 2,200 windows, Begin by determining the formula to calculate the operating income using the equation method. Then, calculate the operating income. (Abbreviation usec FC = Fixed costs, SP = Selling price, VCU = Variable cost per unit, Q = Quantity of units sold.) x 400 x VCU x $ 200,000 2,200 200 2,200 x Operating income 240,000 Next, use (b) the contribution method to calculate operating income if Bennett installs 2,200 windows. Begin by determining the formula to calculate the operating income using the contribution method. Then, calculate the operating income. Operating income x x
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