Question

15 . 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 net income you would expect the company to earn if it produces and sells 15,000 units is:

Answer 1

$21,500

Step-by-step explanation:

Particulars Amount Per Unit 15000 Units

Sales 48,000.00 4.00 60,000

Less: Variable Cost 18,000.00 1.50 22,500

Contribution 30,000.00 2.50 37,500

Less: Fixed Cost 16,000.00 16,000

Net Income $14,000 $21,500

So, the net income you would expect the company to earn if it produces and sells 15,000 units is $21,500.