Last year Minden Company introduced a new product and sold 15,000 units of it at a price of $70 per unit. The product's variable expenses are $40 per unit and its fixed expenses are $540,000 per year. Required: 1. What was this product's net operating income (loss) last year

net operating loss -$90,000

Explanation:

The net operating income or loss is the excess of sales revenue over the operating expenses of the product.

Sales revenue=number of units sold* price per unit

Sales revenue=15,000*$70

sales revenue=$1,050,000

operating expenses=total variable cost+fixed expenses

total variable cost=15,000*$40=$600,000

fixed expenses=$540,000

total operating expenses=$600,000+$540,000=$1,140,000

net operatig income/(loss)=$1,050,000-$1,140,000=-$90,000

answer; 20% is your answer;

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