Question

Given for Wicker Chair Co.

The budgeted selling price is $52 per chair, the variable rate is $39.2 per chair and budgeted fixed costs are $78,3336 per month. What is the budgeted operating income for 7,200 chairs sold in a month?

Answer 1

The budgeted operating income for 7,200 chairs sold is $13,826.

Step-by-step explanation:

Wicker Chair Co. budgeted operating income

Sales (7,200 chairs × $52) $374,400

Less Expenses

Variable (7,200 chairs × $39.20) ($282,240)

Fixed ($78,334)

Budgeted Income / (loss) $13,826

Conclusion :

The budgeted operating income for 7,200 chairs sold is $13,826.