The following static budget is provided: Units 25,000 Units Sales $ 250,000 Less variable costs: Manufacturing costs
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Question:
The following static budget is provided:
| Units | 25,000 | Units | ||
| Sales | $ | 250,000 | ||
| Less variable costs: | ||||
| Manufacturing costs | $ | 80,000 | ||
| Selling and administrative costs | $ | 57,500 | ||
| Contribution margin | $ | 112,500 | ||
| Less fixed costs: | ||||
| Manufacturing costs | $ | 27,500 | ||
| Selling and administrative costs | $ | 21,250 | ||
| Net Income | $ | 63,750 | ||
What will budgeted net income equal if 26,000 units are produced and sold? (Do not round intermediate calculations.)
Multiple Choice
$117,000
$68,250
$66,300
$260,000
Expert Answer:
Related Book For 
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
