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Reflector Glass Company prepared the following static budget for the year: Static Budget Units/Volume Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income/(Loss) 6,000
Reflector Glass Company prepared the following static budget for the year: Static Budget Units/Volume Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income/(Loss) 6,000 Per Unit $3 $18,000 1 6,000 12,000 3,000 $9,000 If a flexible budget is prepared at a volume of 8,500 units, calculate the amount of operating income. The production level is within the relevant range. A. $9,000 B. $14,000 OC. $3,000 D. $8,500
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