Cournot Company sells 100,000 wrenches for $12 a unit. 1 answer below »

Cournot Company sells 100,000 wrenches for $12 a unit. Fixed costs are $300,000, and net income is $200,000. What should be reported as variable expenses in the CVP income statement?

(a) $700,000.

(b) $900,000.

(c) $500,000.

(d) $1,000,000.