Premium Beds is a retailer of luxury bed frames located in Los Angeles, California. Due to...

 

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Premium Beds is a retailer of luxury bed frames located in Los Angeles, California. Due to a recent industry-wide financial crisis, the CFO of Premium Beds fears a significant drop in the firm's upcoming income stream. The CFO asked you to use the company financial information provided below. Sales price per unit Per-unit variable costs: Invoice cost Sales commissions Total per-unit variable costs Total annual fixed costs: Advertising Rent Salaries Total annual fixed costs $3,000.00 2,218.80 281.20 $2,500.00 $ 236,000 178,000. 386,000 $ 800,000 If 4,000 bed frames were sold, Premium Bed's operating income (TB) would be: O O O O O $1,240,000. $1,200,000. $1,120,000. $1,340,000. $1,280,000. Premium Beds is a retailer of luxury bed frames located in Los Angeles, California. Due to a recent industry-wide financial crisis, the CFO of Premium Beds fears a significant drop in the firm's upcoming income stream. The CFO asked you to use the company financial information provided below. Sales price per unit Per-unit variable costs: Invoice cost Sales commissions Total per-unit variable costs Total annual fixed costs: Advertising Rent Salaries Total annual fixed costs $3,000.00 2,218.80 281.20 $2,500.00 $ 236,000 178,000. 386,000 $ 800,000 If 4,000 bed frames were sold, Premium Bed's operating income (TB) would be: O O O O O $1,240,000. $1,200,000. $1,120,000. $1,340,000. $1,280,000.

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