Question

Karter Company had the following information: Selling price per unit - $60 Variable costs per unit Manufacturing - $30 Selling and administrative - $6 Fixed costs per month Manufacturing - $40,000 Selling and administrative - $20,000 What is the flexible budget net income for 10,000 units?

Answer 1

Net income= 180,000

Step-by-step explanation:

Giving the following information:

Selling price per unit - $60

Variable costs per unit Manufacturing - $30

Selling and administrative - $6

Fixed costs per month Manufacturing - $40,000

Selling and administrative - $20,000

Q= 10,000

Sales= 60*10,000= 600,000

Variable costs= (30 + 6)*10,000= (360,000)

Contribution margin= 240,000

Fixed costs per month Manufacturing= (40,000)

Fixed Selling and administrative=(20,000)

Net income= 180,000