Question

ased on a predicted level of production and sales of 22,000 units, a company anticipates total variable costs of $99,000, fixed costs of $30,000, and operating income of $36,000. Based on this information, the budgeted amount of operating income for 20,000 units would be:

Answer 1

$142,000

Step-by-step explanation:

Sales of 22,000 units

Total variable costs is $99,000

The fixed cost is 30,000

Operating income $36,000

Therefore budgeted amount for 20,000 units can be calculated as follows

= 99,000+30,000+36,000

= 156,000

The selling percentage is

=156,000/22,000

= 7.1

7.1× 20,000

= 142,000

Hence the bugected anou t for 30,000 units $142,000