Answer:
$1,550,000
Explanation:
Flexible budget is a type of budget that varies as as the volume or activity changes.
In calculating flexible budget , the variable cost is multiplied by the actual production unit. However , the operating income needs to accommodate all operating expenses including the fixed cost
Sales volume = 32,000 parts
sales price per unit = $60
Variable operating cost per unit = $10
Applicable fixed cost = $50,000
Sales revenue = 32000* 60 =$1,920,000
Variable operating cost = 10 * 320,000=($3,200,000)
fixed cost = ($50,000)
Operating income = $1550,000
