Question
Summer Nights sells bottles of bug spray for $ 6.50 $6.50 each. Variable costs are $ 2.25 $2.25 perbottle, while fixed costs are $ 36
Summer Nights sells bottles of bug spray for $ 6.50
$6.50 each. Variable costs are $ 2.25
$2.25 perbottle, while fixed costs are $ 36 000
$36,000 per month for volumes up to 50 000
50,000 bottles of spray and $ 59 000
$59,000 per month for volumes above 50 000
50,000 bottles of spray. The flexible budget would reflect monthly operating income for 19000
19,000 bottles of spray and 20 000
20,000 bottles of spray of what dollaramounts?
A.
$87,500 and
$49,000, respectively
B.
$123,500 and
$130,000, respectively
C.
$21,750 and
$71,000, respectively
D.
$44,750 and
$49,000, respectively
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