1. A company's flexible budget for 15,000 units of production reflects sales of $285,000; variable costs of $75,000; and fixed costs of $90,000. Calculate the expected level of operating income if the company produces and sells 18,000 units

a. 144,000 b. 132,000 c.87,000 d. 162,000 e. 120,000

2.

Keegan Company manufactures a single product and has a JIT policy that ending inventory must equal 30% of the next month's sales. It estimates that May's ending inventory will consist of 87,900 units. June and July sales are estimated to be 293,000 and 303,000 units, respectively. Compute the number of units to be produced that would appear on the company's production budget for the month of June.

a. 383,900

b.293,000

c.276,630

d. 205, 100

e. 296,000