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Tohono Company 's 2015 master budget included the following fixed budget report. It is based on an expected production and sales volume of 20,000 units.Classify
Tohono Company 's 2015 master budget included the following fixed budget report. It is based on an expected production and sales volume of 20,000 units.Classify all items listed in the fixed budget as variable or fixed. Also determine their amounts per unit or their amounts for the year , as appropriate prepare flexible budgets for the company at sales volumes 18,000 and 24,000 units. The company's business conditions are improving . one possible result is a sales volume of 28,000 units. The company president is confident that this volume is within the relavant range of existing capacity. How much would operating income increases over the 2015 budgeted amount of $125,000 if this level is reached without increasing capacity
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