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Cost of goods sold and variable operating expenses vary directly with sales, and the income tax rate is 30% at all levels of operating income.
Cost of goods sold and variable operating expenses vary directly with sales, and the income tax rate is 30% at all levels of operating income. If the concert season is slow due to poor weather, Baskin estimates that sales could fall to as low as 60,000 T-shirts. In a flexible budget for sales of 60,000 T-shirts, how much would Baskin budget for operating expenses? A. $338,800. B. $418,400. C. $238,800. D. $218,400
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