Question
Rays cost accountant prepared the following static budget based on expected activity of 2,240 units for the current accounting period: Sales Revenue $ 35,840 Variable
Rays cost accountant prepared the following static budget based on expected activity of 2,240 units for the current accounting period:
| Sales Revenue | $ 35,840 | |
|---|---|---|
| Variable Costs | (13,440) | |
| Contribution Margin | 22,400 | |
| Fixed Costs | (8,960) | |
| Net Income | $ 13,440 |
If Ray actually produced 1,740 units, the flexible budget would show variable costs of
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
9th Edition
978-0470317549, 9780470387085, 047031754X, 470387084, 978-0470533475
