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Maxie Company is creating their budget for the following year. Here is their relevant information: Expected Sales 1,000 units per month Sales Price $15 per
Maxie Company is creating their budget for the following year. Here is their relevant information:
Expected Sales 1,000 units per month
Sales Price $15 per unit
Variable Labor costs $3 per unit
Variable Material costs $2 per unit
Fixed Costs $6,000 per month
What is their budgeted/expected Operating Income per month?
a) $10,000
b) Can not be determined from this information
c) $6,000
d) $4,000
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