Final answer:
The budgeted operating results for 2011 can be calculated by considering the annual capacity of the company and the details of revenues and costs. To calculate the budgeted operating results, we need to determine the expected level of production and the selling price per unit, as well as the variable and fixed costs. By subtracting the total costs from the revenues, we can determine the budgeted operating results for 2011.
Step-by-step explanation:
The budgeted operating results for 2011 can be calculated by considering the annual capacity of the company and the details of revenues and costs.
First, we need to determine the expected number of units produced in 2011. If the annual capacity is 18,000 units, this would be the maximum number of units the company can produce in a year. However, to determine the budgeted operating results, we also need to consider the expected level of production. Let's assume that the company plans to operate at 80% capacity utilization. This means that 80% of the annual capacity, which is 18,000 units, will be produced.
To calculate the expected number of units produced in 2011, we can multiply the annual capacity by the capacity utilization rate: 18,000 units * 80% = 14,400 units.
Next, we need to determine the budgeted revenues and costs based on the expected level of production.
For revenues, we need to know the selling price per unit. Let's assume that the selling price is $100 per unit. To calculate the budgeted revenues, we can multiply the expected number of units produced by the selling price per unit: 14,400 units * $100 = $1,440,000.
For costs, we need to consider both variable and fixed costs. Variable costs are costs that change with the level of production, while fixed costs remain constant regardless of the level of production.
Let's assume that the variable cost per unit is $50 and the fixed costs for the year are $500,000. To calculate the variable costs, we can multiply the expected number of units produced by the variable cost per unit: 14,400 units * $50 = $720,000. To calculate the total costs, we can add the variable costs and the fixed costs: $720,000 (variable costs) + $500,000 (fixed costs) = $1,220,000.
Finally, we can calculate the budgeted operating results by subtracting the total costs from the revenues: $1,440,000 (revenues) - $1,220,000 (total costs) = $220,000.