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question 15

Stz Cempany makes chairs. The budgeled selng price is $55 per chair, the varabile rate is $25 per chair and budgeted fixed co
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Answer #1

Solution:

Contribution margin per unit = $55 - $25 = $30

Budgeted operating income = Units* contribution margin per unit - fixed costs

= $30*3100 - $20000 = $73,000

Hence option "c" is correct.

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