Question

Sound Design sells its computer speakers for $115 per set Its variable cost is $75 per set ot speakers. Fixed costs are $80,000 per month for volumes up to 2, 400 sets of speakers Above 2, 400 sets, monthly fixed costs are $115,000 What is the budgeted operating income (loss) at a sales level of 2, 300 sets of speakers per month? Operating income of $92,000 Operating income of $184, 500 Operating loss ol $23,000 Operating income of $12,000

Answer 1

Answer:

The correct answer is D.

Explanation:

Giving the following information:

Sound Design sells its computer speakers for $115 per set Its variable cost is $75 per set of speakers. Fixed costs are $80,000 per month for volumes up to 2, 400 sets of speakers Above 2, 400 sets, monthly fixed costs are $115,000. Sales level of 2, 300.

Sales= 2,300*115= 264,500

Variable costs= 2,300*75= (172,500)

Contribution margin= 92,000

Fixed costs= (80,000)

Net operating income= 12,000