Before the year began, the following static budget was developed for the estimated sales of 100,000. Sales are sluggish and management needs to revise its budget to 85,000 units of sales. What is net income at 85,000 units of sales? A) ($33,500) B) $22,750 C) $66,500 D) ($21,000) SalesCost of goods soldDirect materialDirect laborVariable manufacturing overheadFixed manufacturing overheadCost of goods soldGross profitVariable sales and administration expensesFixed sales and administration expensesIncome before taxesTaxesNet income$3,500,000900,0001,000,000250,00080,0002,230,0001,270,000100,000950,000220,00066,000$ 154,000

Lets understand the basics. Budgets are generally prepared in order to estimate future profit and…

Before the year began, the following static budget was developed for the estimated sales of 100,000. Sales are sluggish and management needs to revise its budget to 85,000 units of sales. What is net income at 85,000 units of sales? A) ($33,500) B) $22,750 C) $66,500 D) ($21,000)

Before the year began, the following static budget was developed for the estimated sales of 100,000. Sales are sluggish and management needs to revise its budget to 85,000 units of sales. What is net income at 85,000 units of sales? A) ($33,500) B) $22,750 C) $66,500 D) ($21,000)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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