A company's flexible budget for 12,000 units of production showed sales, $46,800; variable costs, $12,000; and fixed costs, $28,000. The operating incomeexpected if the company produces and sells 28,000 units is:Multiple Choice$ 6,800.$50,256.$12,000.$53,200.$40,000.

WORKING NOTES: Sale= ($46800/12000 units ) x 28000 units Variable cost=($12000/12000 units ) x 28000…

Answered: expected if the company produces and…

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expected if the company produces and sells 28,000 units is: Multiple Choice $ 6,800. $50,256. $12,000. $53,200.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 11PB: Prepare a flexible budgeted income statement for 47,000 units using the following information from a...

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Question

A company's flexible budget for 12,000 units of production showed sales, $46,800; variable costs, $12,000; and fixed costs, $28,000. The operating income
expected if the company produces and sells 28,000 units is:
Multiple Choice
$ 6,800.
$50,256.
$12,000.
$53,200.
$40,000.

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