A company has the following budget formula for annual electricity expense in its shop:                               Expense = P 7,200 + (P0.60 x units produced) If management expects to produce 200,000 units during March, the appropriate budget for electricity would be. P 7,200 P 12,000 P 12,600 P 19,200 Group of answer choices 1 2 3 4

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...
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A company has the following budget formula for annual electricity expense in its shop:

                              Expense = P 7,200 + (P0.60 x units produced)

If management expects to produce 200,000 units during March, the appropriate budget for electricity would be.

  1. P 7,200
  2. P 12,000
  3. P 12,600
  4. P 19,200
Group of answer choices
1
2
3
4
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