I. Answer the following questions.

a. A company's flexible budget for 12,000 units of production showed total contribution margin of $24,000 and fixed costs, $16,000. The operating income expected if the company produces and sells 15,000 units is:

$34,000.

$10,000.

$18,667.

$8,000.

$14,000.

b. A company's flexible budget for 12,000 units of production showed per unit contribution margin of $3.00 and fixed costs, $20,000. The operating income expected if the company produces and sells 18,000 units is:

$34,000.

$10,000.

$18,667.

$16,000.

$24,000.

c. Based on predicted production of 12,000 units, a company anticipates $150,000 of fixed costs and $123,000 of variable costs. The flexible budget amounts of fixed and variable costs for 10,000 units are:

$125,000 fixed and $102,500 variable.

$125,000 fixed and $123,000 variable.

$102,500 fixed and $150,000 variable.

$150,000 fixed and $123,000 variable.

$150,000 fixed and $102,500 variable.