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Based on a predicted level of production and sales of 12,000 units, a company anticipates reporting income of $32,000 after deducting variable costs of $72,000

Based on a predicted level of production and sales of 12,000 units, a company anticipates reporting income of $32,000 after deducting variable costs of $72,000 and fixed costs of $4,000. Based on this information, the budgeted amounts of fixed and variable costs for 15,000 units would be:

Multiple Choice

  • $4,000 of fixed costs and $90,000 of variable costs.

  • $5,000 of fixed costs and $90,000 of variable costs.

  • $4,000 of fixed costs and $72,000 of variable costs.

  • $4,000 of fixed costs and $81,000 of variable costs.

  • $5,000 of fixed costs and $72,000 of variable costs.

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