Question

A company's flexible budget for 15,000 units of production showed sales, $90,000; variable costs, $37,500; and fixed costs, $25,000. The sales expected if the company produces and sells 19,000 units is (Do not round intermediate calculations): Multiple Choice $114,000. $9,833. $34,833. $96,250. $27,500.

Answer 1

$114,000

Step-by-step explanation:

The computation of net operating income is given below:-

Sales price per unit = Sales ÷ Units of production

= $90,000 ÷ 15,000

= $6

sales expected = Sales × Sold units

= $6 × 19,000

= $114,000

Therefore for computing the sales expected if the company produces and sells 19,000 units we multiply sales with sold units.