Compute the operating income using flexible budget, Accounting Basics

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Compute the operating income using flexible budget

Assignment Task: A company's master budget projected the following information: Sales (25,000 units) $250,000

Manufacturing costs (1/3 fixed) 120,000

Other operating costs (all fixed) 100,000

If the company actually sold 27,500 units, compute the operating income when using a flexible budget?

A. $51,000

B. $47,000

C. $33,000

D. $43,000

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Accounting Basics: Compute the operating income using flexible budget

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Accounting Basics: Compute the operating income using flexible budget

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