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Pixson Company has a relevant range of 6,000 to 12,000 units, and practices just in time inventory management so the number of units produced is
Pixson Company has a relevant range of 6,000 to 12,000 units, and practices just in time inventory management so the number of units produced is equal to the number of units sold. The Pixson Company's budgeted income statement for 2014 follows:
Sales (8,000 units)
$128,000
Direct materials
27,600
Direct labor
6,000
Variable overhead
16,800
Fixed Overhead
15,000
Fixed selling & administrative expenses
30,000
Net Income
$32,600
A flexible budget for 12,000 units would show net income of:
? 1.
$71,400
? 2.
$96,600
? 3.
$74,100
? 4.
$48,900
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