Putnam Company
Below is an income statement for Putnam Company:
Sales $600,000
Variable costs (150,000)
Contribution margin $450,000
Fixed costs (300,000)
Profit before taxes $150,000
If we assume that there is no change in fixed costs, what will be the expected net income on sales of $850,000?
A.$337,500
B.$550,000
C.$325,000
D.$415,325