Question
Speedy Bikes Couriers Company prepared the following static budget for the year: Static Budget Units/Volume 6,000 Per Unit Sales Revenue $7.00 $42,000 Variable Costs 1.50
Speedy Bikes Couriers Company prepared the following static budget for the year:
| Static Budget |
|
|
| Units/Volume |
| 6,000 |
|
| Per Unit |
|
| Sales Revenue | $7.00 | $42,000 |
| Variable Costs | 1.50 | 9,000 |
| Contribution Margin |
| 33,000 |
| Fixed Costs |
| 3,000 |
| Operating Income/(Loss) |
| $30,000 |
If a flexible budget is prepared at a volume of 8,700, calculate the amount of operating income. The production level is within the relevant range.
| a | $3,000 |
| b | $44,850 |
| c | $13,050 |
| d | $30,000 |
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Intermediate Accounting Volume 2
Authors: Hanlon, Hodder, Nelson, Roulstone, Dragoo
2nd Edition
1618533134, 9781618533357
