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The following static budget is provided: Static Budget Per Unit Total at 15,000 units Sales $60 $900,000 Less variable costs: Manufacturing costs (30) (450,000) Selling
The followingstatic budgetis provided:
Static Budget
Per Unit
Total at 15,000 units
Sales
$60
$900,000
Less variable costs:
Manufacturing costs
(30)
(450,000)
Selling and administrative costs
(10)
(150,000)
Contribution margin
$20
$300,000
Less fixed costs:
Manufacturing costs
(75,000)
Selling and administrative costs
(125,000)
Total fixed costs
(200,000)
Net income
$100,000
What will be the flexible budget contribution margin when 13,000 units are produced and sold?
Select one:
a.$250,000
b.$255,000
c.$260,000
d.$240,000
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