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A company's master budget projected the following information:Sales (25,000 units)$250,000 Manufacturing costs (1/3 fixed)120,000 Other operating costs (all fixed)100,000 If the company actually sold 27,500

A company's master budget projected the following information:Sales (25,000 units)$250,000

Manufacturing costs (1/3 fixed)120,000

Other operating costs (all fixed)100,000

If the company actually sold 27,500 units, the operating income when using a flexible budget would be

  •  A.
  • $51,000
  •  B.
  • $47,000
  •  C.
  • $33,000
  •  D.
  • $43,000

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