Based on a predicted level of production and sales of 29,000 units, a company anticipates total...
Based on a predicted level of production and sales of 29,000 units, a company anticipates total variable costs of $113,100, fixed costs of $29,000, and operating income of $203,580. Based on this information, the budgeted amount of operating income for 26,000 units would be: I know the correct answer is $179,520, but I don't know how they got that.
Multiple Choice
a. $179,520.
b. $208,520.
c. $66,420.
d. $101,400.
e. $309,920.
Homework Answers
| Total contribution magin at 29,000 units = Fixed costs+Operating income = 29000+203580= $232580 | |||||||||
| Contribution margin per unit=232580/29000= $8.02 | |||||||||
| Operating income for 26,000 units=(26000*8.02)-29000= $179520 | |||||||||
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Based on a predicted level of production and sales of 29,000
units, a company anticipates total...
1.) Based on a predicted level of production and sales of 29,000 units, a company anticipates...
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