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If a firm's dol is 3.6 with a profit of $2,000,000 and depreciation of $500,000, what are its other fixed costs?
a. $5,520,000
b. $5,250,000
c. $5.800.000
d. $4,700,000

Respuesta :

The other fixed cost will be D. $4,700,000.

How to calculate the cost?

The contribution margin will be:

= $2000000 × 3.6

= $7,200,000

The total fixed cost will be:

= $7,200,000 - $2,000,000

= $5,200,000

The other fixed cost:

= 5,200,000 - 500,000

= 4,700,000

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