Question

Summer Nights sols boties of bug spray for $8.00 each Variable costs are $2.00 per bottle, while food s are 500.000 per month for volumes up to 40.000 bottles of spray and $50,000 per month for volumes above 40.000 bottles of spray. The flexible budget would reflect many operating income for 10.000 boos of spray and 22.000 bottles of spray of what dollar amounts? OA 50.000 and $92,000, respectively OB $10,000 and 192.000, respectively OC. $20,000 and 5176.000respectively OD. 52000 and $118,000, respectively

Answer 1

	Flexible Budgets
	10,000 bottles	22,000 bottles
Sales	$80,000	$1,76,000
Less:Variable costs	$20,000	$44,000
Less:Fixed Costs	$40,000	$40,000
Operating Income	$20,000	$92,000
So Option A is answer