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Cox Manufacturing Company prepared the following static budget income statement for 2011: Sales Revenue $125,000 Variable Costs (75,000) Contribution Margin 50,000 Fixed Cost (20,000) Net
Cox Manufacturing Company prepared the following static budget income statement for 2011:
Sales Revenue $125,000
Variable Costs (75,000)
Contribution Margin 50,000
Fixed Cost (20,000)
Net Income $ 30,000
The budget was based on an expected sales volume of 5,000 units. Actual production was 6,000 units. The amount of net income based on a flexible budget of 6,000 units would have been
a. $24,000.
b. $26,000.
c. $30,000.
d. $40,000.
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