During its most recent fiscal year, raphael enterprises sold 370,000 electric screwdrivers at a price of $20.10 each. fixed costs amounted to $1,369,000 and pretax income was $1,739,000. what amount should have been reported as variable costs in the company's contribution margin income statement for the year in question

$4,329,000

Explanation:

We know that

Pre-tax income = Sales - variable cost - fixed cost

where,

Sales = Number of units sold × selling price per unit

        = 370,000 units × $20.10

        = $7,437,000

And, the other items values remain the same

Now put these values to the above formula

So, the value would be equal to

$1,739,000 = $7,437,000 - variable cost - $1,369,000

So, the variable cost = $4,329,000

c. Broker P will charge $184.38 less than Broker Q

Explanation:

1. Broker P

Charge: $8.50 for every ten shares of stock.Number of shares you buy: 500Total charge: 500 shares × ($8.50 / 10 shares) = $425

2. Broker Q

Charge: $65.00 for every thousand dollars bought or sold. Value of 500 shares: $18.75/share × 500shares = $9,375Total charge: $9,375 × ($65.00 / $1,000) = $609.38

3. Difference:

$609.38 - $425.00 = $184.38

Therefore, broker P charges $184.38 less than broker Q.