Sunny Dayz sells bottles of sunscreen lotion for $8.00 each. Variable costs are $4.50 per bottle, while
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Question:
Sunny Dayz sells bottles of sunscreen lotion for $8.00 each. Variable costs are $4.50 per bottle, while fixed costs are $42,000 per month for volumes up to 20,000 bottles of lotion and $52,000 per month for volumes above 20,000 bottles of lotion. The flexible budget would reflect monthly operating income for 18,000 bottles of lotion and 23,000 bottles of lotion of what dollar amounts? Show your work.
A. $102,000 and $38,500, respectively
B. $144,000 and $184,000, respectively
C. $21,000 and $28,500, respectively
D. $132,000 and $11,000, respectively
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