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A companys flexible budget for 16,000 units of production showed sales, $48,000; variable costs, $24,000; and fixed costs, $

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Answer #1

At 16,000 units

Sales = $48,000

Variable costs = $24,000

Fixed costs = $17,000

Selling price per unit = Total sales/Number of units sold

= 48,000/16,000

= $3

Variable cost per unit = Total variable cost/Number of units sold

= 24,000/16,000

= $1.5

Flexible budget (17,000 units)

Sales (17,000 x 3) 51,000
Variable costs (17,000 x 1.5) - 25,500
Fixed costs - 17,000
Operating income $8,500

Fourth option is the correct option

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