If a firm has a break-even point of 20,000 units and the contribution margin on the firm's single product is $3.00 per unit and fixed costs are $60,000, what will the firm's net income be at sales of 30,000 units?

A. $90,000
B. $30,000
C. $15,000
D. $45,000

the firm's cost at 20,000 units is $60,000. The firm's cost at 30,000 units is $90,000

net income at 30,000 unit sales is...
net income = total sales - total expenses

$30,000 = $90,000 - $60,000

B is my final answer....Is this correct???

Yes, your answer is correct.

Your answer is partially correct. However, the formula to calculate net income is:

Net Income = (Unit Sales * Contribution Margin) - Fixed Costs

In this case, the contribution margin is $3.00 per unit, the fixed costs are $60,000, and the unit sales are 30,000.

So, the net income would be:

Net Income = (30,000 * $3.00) - $60,000
Net Income = $90,000 - $60,000
Net Income = $30,000

Therefore, the correct answer is B. $30,000.

Your answer is incorrect. Let me explain how to properly calculate the net income.

To calculate the net income at sales of 30,000 units, we need to consider both the fixed costs and the variable costs. The fixed costs are given as $60,000, and the contribution margin per unit is $3.00.

First, we calculate the total variable costs by multiplying the contribution margin per unit by the number of units sold. In this case, the contribution margin per unit is $3.00, and the number of units sold is 30,000. So the total variable costs would be $3.00 × 30,000 = $90,000.

Next, we calculate the total expenses by adding the fixed costs to the total variable costs. In this case, the fixed costs are $60,000 and the total variable costs are $90,000. So the total expenses would be $60,000 + $90,000 = $150,000.

Finally, we can calculate the net income by subtracting the total expenses from the total sales. In this case, the total sales are $30,000 (30,000 units sold) and the total expenses are $150,000. So the net income would be $30,000 - $150,000 = -$120,000.

Based on these calculations, the correct answer is none of the options provided. The correct answer is not provided in the given options.