“This Year Last Year Units Sold 250,000 200,000 Sales Revenue $1,250,000 $1,000,000 Less: Cost of Goods Sold 875,000 700,000 Gross Margin $375,000 $300,000 Less: Operating Expenses 222,000 210,000 Net Income $153,000 $ 90,000 76. What are the company’s total fixed operating expenses per year? a. $60,000. b. $174,000. c. $150,000. d. $162,000.”,”4The company’s total fixe operating expense per year: Cost at the high activity level – Cost at the low activity level = Variable Cost High activity level – Low activity level1,472,000 – 1,210,000 = 5.24 / unit 250,000 – 200,000 Variable Costs x Units = Variable cost element5.24 x 200,000 = 1,048,000Fixed cost element = Total cost – Variable cost element = 1,210,000 – 1,048,000= $162

“This Year Last Year Units Sold 250,000 200,000 Sales Revenue $1,250,000 $1,000,000 Less: Cost of Goods Sold 875,000 700,000 Gross Margin $375,000 $300,000 Less: Operating Expenses 222,000 210,000 Net Income $153,000 $ 90,000 76. What are the company’s total fixed operating expenses per year? a. $60,000. b. $174,000. c. $150,000. d. $162,000.”,”4The company’s total fixe operating expense per year: Cost at the high activity level – Cost at the low activity level = Variable Cost High activity level – Low activity level1,472,000 – 1,210,000 = 5.24 / unit 250,000 – 200,000 Variable Costs x Units = Variable cost element5.24 x 200,000 = 1,048,000Fixed cost element = Total cost – Variable cost element = 1,210,000 – 1,048,000= $162

000″