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19) Peddlin' Pete's Cycles sells its entry-level bicyles for $400 each. Its variable cost is $250 per bicycle Fixed costs are $35,000 per month for

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19) Peddlin' Pete's Cycles sells its entry-level bicyles for $400 each. Its variable cost is $250 per bicycle Fixed costs are $35,000 per month for volumes up to 1,200 bicycles. Above 1,200 bicycles, monthly fixed costs are $55,000. What is the budgeted operating income at a level of 1,300 bicycles per month? D) $160,000 C) $195,000 B) $465,000 A) $140,000 20) A sales volume variance for units is the difference between which of the following? A) Actual sales volume and normal sales volume B) Number of units actually sold and number of units expected to be sold according to the static budget C) Number of units in the flexible budget at two levels of activity D) Actual units sold and the number of units in the flexible budget 21) A flexible budget variance is the difference between which of the following? A) Amounts in the flexible budget and the actual results B) Actual results and amounts in the static budget C) Amounts in the flexible budget and the static budget D) The budgeted amounts for each level of sales in the flexible budget 22) Davis Corporation manufactures and sells portable radios. The radio sells for $35 per unit and its variable costs per unit are $30. Fixed costs are $64,000 per month for sales volumes up to 32,000 radios. If more than 32,000 radios are sold, the fixed costs will be $83,000. The flexible budget would reflect what monthly operating income for a sales volume of 41,000 radios? A) $205,000 B) $141,000 C) $122,000 D) $1,435,000 23) Sound Design sells its computer speakers for $115 per set. Its variable cost is $75 per set of speakers. Fixed costs are $80,000 per month for volumes up to 2,400 sets of speakers. Above 2,400 sets, monthly fixed costs are $115,000, What is the budgeted operating income (loss) at a sales level of 2,600 sets of speakers per month? A) Operating income of $104,000 C) Operating income of $184,000 B) Operating income of $24,000 D) Operating loss of $11,000 24) The difference in dollars between amounts in the static budget and the flexible budget is called the: A) actual variance. C) static budget variance. B) flexible budget variance. D) sales volume variance

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