Question

MC Qu. 59 A company's flexible budget for... A company's flexible budget for 16,000 units of production showed sales, $96,000; variable costs, $56,000; and fixed costs, $19,000. The sales expected if the company produces and sells 20,000 units is (Do not round intermediate calculations): Multiple Choice $26,250. $120,000. $21,000. $7,250. $52,500. Next Visit question

Answer 1

Answer:

$120,000

Explanation:

The computation of sales is shown below:-

For computing the sales revenue first we need to find out the selling price per unit which is here below:-

Selling price per unit = Sales ÷ Units

= $96,000 ÷ 16,000

= $6

Sales revenue when 20,000 units are sold = Selling price per unit × Number of units sold

= $6 × 20,000

= $120,000

Therefore for computing the sales revenue we simply applied the above formula.