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Virty [35]
2 years ago
8

Krazy Kayaks sells its entryminuslevel kayaks for​ $750 each. Its variable cost is​ $500 per kayak. Fixed costs are​ $25,000 per

month for volumes up to​ 1,100 kayaks. Above​ 1,100 kayaks, monthly fixed costs are​ $60,000. What is the budgeted operating income at a level of​ 2,500 kayaks per​ month?
Business
1 answer:
Daniel [21]2 years ago
7 0

Answer:

Net operating income= 565,000

Explanation:

Giving the following information:

Krazy Kayaks sells its entry-level kayaks for​ $750 each. Its variable cost is​ $500 per kayak. Fixed costs are​ $25,000 per month for volumes up to​ 1,100 kayaks. Above​ 1,100 kayaks, monthly fixed costs are​ $60,000.

Sales= 2,500*750= 1,875,000

COGS= (500*2,500)= (1,250,000)

Gross profit= 625,000

Fixed costs= (60,000)

Net operating income= 565,000

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