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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
In the first month of the new year, Maxie Company only produced and sold 800 units. What is their flexible budget operating income?
a) $4,000
b) $0
c) $8,000
d) $2,000
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