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sesenic [268]
3 years ago
13

A company's flexible budget for 12,000 units of production showed sales, $48,000; variable costs, $18,000; and fixed costs, $16,

000. The operating income expected if the company produces and sells 16,000 units is: Select one:
Business
1 answer:
Drupady [299]3 years ago
4 0

Answer:

$24,000

Explanation:

Selling price per unit:

= Sales ÷ units produced

= $48,000 ÷ 12,000

= $4

Variable cost per unit:

= variable costs ÷ units produced

= $18,000 ÷ 12,000

= $1.5

Fixed cost = $16,000

Net operating income if the company produces and sells 16,000 units:

= Sale - Variable cost - Fixed cost

= (16,000 × $4) - (16,000 × $1.5) - $16,000

= $64,000 - $24,000 - $16,000

= $24,000

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