Winter Leisure is a retailer of snowboards. The information below is for the quarter ended December 31:

	Amount
Total sales revenue	$	1,600,000
Selling price per snowboard	$	800
Variable selling expense per snowboard	$	100
Variable administrative expense per snowboard	$	40
Total fixed selling expense	$	300,000
Total fixed administrative expense	$	240,000
Merchandise inventory, beginning balance	$	60,000
Merchandise inventory, ending balance	$	90,000
Merchandise purchases	$	640,000

Required:

 What would operating income be if only 1,500 snowboards were sold in a quarter? You can assume no change to fixed expenses will occur if sales decline to 1,500 snowboards.

Answer rating: 100% (QA)

To calculate the operating income when only 1500 snowboards are sold you need to consider both ... View the full answer