Question

Alphonse Company manufactures staplers. The budgeted sales price is $ 12 per​ stapler, the variable costs are $ 3 per​ stapler, and budgeted fixed costs are $ 12 comma 000. What is the budgeted operating income for 4 comma 500 ​staplers?

Answer 1

Operating income $28,500

Step-by-step explanation:

The budgeted income is the difference between the budgeted sales revenue and budgeted costs

$

Budgeted revenue ( 12× 500) 54,000

Variable cost (3× 4500) (1,500)

Contribution 52500

Budgeted fixed cost (12,000)

operating income 28,500

Operating income $28,500