Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Portobello Company prepared the following planning budget for the coming month: Planning Budget Units/volume 5,000 4,000 Per Unit Sales revenue $3.00 $15,000 Variable expenses $1.80
Portobello Company prepared the following planning budget for the coming month:
Planning Budget |
|
|
|
Units/volume |
| 5,000 | 4,000 |
| Per Unit |
|
|
Sales revenue | $3.00 | $15,000 |
|
Variable expenses | $1.80 | 9,000 |
|
Contribution margin |
| 6,000 |
|
Fixed expenses |
| 5,000 |
|
Operating income/(loss) |
| $1,000 |
|
If a flexible budget was prepared at a volume of 4,000, how much would the operating income be?
You can do your calculations in the blank column above.
Group of answer choices
$1,000
($200)
$2,200
$500
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started