Answer:
The correct answer is D.
Explanation:
Giving the following information:
Sound Design sells its computer speakers for $115 per set Its variable cost is $75 per set of speakers. Fixed costs are $80,000 per month for volumes up to 2, 400 sets of speakers Above 2, 400 sets, monthly fixed costs are $115,000. Sales level of 2, 300.
Sales= 2,300*115= 264,500
Variable costs= 2,300*75= (172,500)
Contribution margin= 92,000
Fixed costs= (80,000)
Net operating income= 12,000