The cost accountant for Carlos Candies, Inc. prepared the following static budget based on expected activity of 2,600 units: $ 79,000 (48,100) 30,900 Revenues Variable Costs Contribution Margin Fixed Costs (19,500) $ 11,400 Net Income If Carlos actually produced 2,500 units, the flexible budget would show fixed costs amounting to Multiple Choice $21,300. $19,500. $67,600.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter7: Budgeting
Section: Chapter Questions
Problem 15EA: Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per...
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4th option: none of the above.
The cost accountant for Carlos Candies, Inc. prepared the following static budget based on expected activity of 2,600 units:
Revenues
$ 79,000
Variable Costs
(48,100)
Contribution Margin
30,900
Fixed Costs
(19,500)
Net Income
$ 11,400
If Carlos actually produced 2,500 units, the flexible budget would show fixed costs amounting to
Multiple Choice
$21,300.
$19,500.
$67,600.
Transcribed Image Text:The cost accountant for Carlos Candies, Inc. prepared the following static budget based on expected activity of 2,600 units: Revenues $ 79,000 Variable Costs (48,100) Contribution Margin 30,900 Fixed Costs (19,500) Net Income $ 11,400 If Carlos actually produced 2,500 units, the flexible budget would show fixed costs amounting to Multiple Choice $21,300. $19,500. $67,600.
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