XYZ Company reported the following revenue and cost information for October: Sales revenue ............ $494,000 Variable costs
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Question:
XYZ Company reported the following revenue and cost information for October:
Sales revenue ............ $494,000
Variable costs ........... $212,420
Fixed costs .............. $192,660
XYZ Company re-negotiated it lease beginning in November. The old lease required fixed payments of $26,000 per month. The new lease eliminated these payments and instead required a monthly payment equal to 4% of sales for the month.
XYZ Company reported sales revenue of $418,000 for the month of November.
Calculate the net income reported by XYZ Company in November.
Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
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