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Infinity Clock Company prepared the following static budget for the year: Static Budget Units/Volume 9,000 Per Unit Sales Revenue $5.00 $45,000 Variable Costs 1.50
Infinity Clock Company prepared the following static budget for the year: Static Budget Units/Volume 9,000 Per Unit Sales Revenue $5.00 $45,000 Variable Costs 1.50 13,500 Contribution Margin 31,500 Fixed Costs Operating Income/(Loss) 4,000 $27,500 If a flexible budget is prepared at a volume of 6,900 units, calculate the amount of operating income. The production level is within the relevant range. A. $10,350 B. $27,500 c. $4,000 D. $20,150
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