Question

und Design sols its computer speakers for $125.00 per tots variable cost $30.00 per set of skor Fixed cose 02.000. What is the budgeted operating income (0 ) Sales level of 2.000 sets of speakers per month? s 000 per month for volumes up to 3,000 sets of speakers Above 3.000 monthly fixed costs are A Operating income of $5,000 B. Operating income of $90.000 c. Operating income of $165,000 D. Operating loss of $12.000

Answer 1

Answer:

Option 1st is correct. i.e operating income of $5000.

Calculation of net operating income
	Amount($)
Revenue = 2000 sets × $125	2,50,000
Less:
Variable Costs = 2000 sets × $80	1,60,000
Fixed expenses	85,000
Operating income	5,000