Above 2000 microwave ovens monthly fixed costs are 135000


Question - Myer Appliances sells its microwave ovens for $110 each. Its variable cost is $65 per microwave oven. Fixed costs are $90,000 per month for volumes up to 2,000 microwave ovens. Above 2,000 microwave ovens, monthly fixed costs are $135,000. What is the budgeted operating income (loss) at a sales level of 2,500 microwave ovens per month?

A. Operating loss of $22,500

B. Operating income of $22,500

C. Operating income of $112,500

D. Operating income of $140,000

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Accounting Basics: Above 2000 microwave ovens monthly fixed costs are 135000
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