CORRECT ANSWER A. IF DAYTON SOLD 30,000 UNITS, THE NET INCOME W...

260.

Correct answer a. If Dayton sold 30,000 units, the net income would be $24,000.

Contribution

$90,000

[30,000 x ($10 - $7)]

Fixed costs

42,000

Gross profit

48,000

Tax @50%

24,000

Net income

$24,000