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Question
During its most recent fiscal year, Raphael Enterprises sold 200,000 electric screwdrivers at a price of $15 each. Fixed costs amounted to $400,000 and pretax income was $600,000. What amount should have been reported as variable costs in the company's contribution margin income statement for the year in question?A.$2,400,000.
B.$1,600,000.
C.$3,000,000.
D.$2,000,000.
E.$1,000,000.
Answer
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