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Sedaia [141]
3 years ago
12

The following static budget is provided: Units 22,000 Units Sales $ 220,000 Less variable costs: Manufacturing costs $ 77,000 Se

lling and administrative costs $ 50,600 Contribution margin $ 92,400 Less fixed costs: Manufacturing costs $ 26,400 Selling and administrative costs $ 20,900 Net income $ 45,100 What will budgeted net income equal if 20,000 units are produced and sold
Business
1 answer:
Minchanka [31]3 years ago
5 0

Answer:

$43,064

Explanation:

Sales $220,000 / 22,000 × 20,000

$200,000

Variable costs $77,000 / 22,000 × 20,000

($63,636)

Selling and admin $50,600 / 22,000 × 20,000

($46,000)

Manufacturing cost fixed

($26,400)

Selling and admin fixed

($20,900)

Net income

$43,064

Therefore, budgeted net income will equal $43,064 if 20,000 units are produced and sold.

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