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Kevin Company prepared the following static budget for the year 2015: Static Budget Units/volume 5,000 Per Unit Sales revenue $3.00 $15,000 Variable expenses $1.50 7,500
Kevin Company prepared the following static budget for the year 2015:
Static Budget | ||
Units/volume | 5,000 | |
Per Unit | ||
Sales revenue | $3.00 | $15,000 |
Variable expenses | $1.50 | 7,500 |
Contribution margin | 7,500 | |
Fixed expenses | 4,000 | |
Operating income/(loss) | $3,500 |
If a flexible budget was prepared at a volume of 6,000, calculate the amount of operating income.
Select one:
A. $9,000
B. $3,500
C. $5,000
D. $4,000
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