Hughes Company manufactures harmonicas which it sells for $31 each. Variable costs for each unit are $15and total fixed costs are $7,000.

How many units must be sold to earn income of $1,000?

A. 63

B. 533

C. 500

D. 258

Ibis Paper Company prepared the following static budget for November:

Static Budget
Units/Volume		11,000
	Per Unit
Sales Revenue	$22.00	$242,000
Variable Costs	7.00	77,000
Contribution Margin		165,000
Fixed Costs		13,000
Operating Income/(Loss)		$152,000

If a flexible budget is prepared at a volume of 15,000 units, calculate the operating income. The production level is within the relevant range.

A. $165,000

B. $152,000

C. $212,000

D. $225,000