Question

A company that manufactures cell phones has been given a quarterly operating budget of $951,615.00. The company's quarterly

Answer 1

Answer: D. 12,330 phones

Step-by-step explanation:

First remove the fixed cost from the operating budget so that the variable cost that can be spent on each phone is known in total:

= 951,615 - 225,378

= $726,237

With each phone costing $58.90, the total number of phones that can be produced is therefore:

= Variable budget / Variable cost per phone

= 726,237 / 58.90

= 12,330 phones