Hathaway Inc. produces and sells golf umbrellas to local resorts. Hathaway anticipates April to be a busy month with the sale of 1000 umbrellas. The company has prepared the following static budget for April: Sales revenue (1000 units) $40000 Variable costs: Direct materials $5000 Direct labour $6000 Overhead $1500 Fixed costs $4000 Net income $23500 During April, Hathaway actually produced and sold 900 umbrellas. What should be Hathaway's net income in April based on a flexible budget? O $20 750 O $21 750 O None of the other alternatives $31 750

Hathaway Inc. produces and sells golf umbrellas to local resorts. Hathaway anticipates April to be a busy month with the sale of 1000 umbrellas. The company has prepared the following static budget for April: Sales revenue (1000 units) $40000 Variable costs: Direct materials $5000 Direct labour $6000 Overhead $1500 Fixed costs $4000 Net income $23500 During April, Hathaway actually produced and sold 900 umbrellas. What should be Hathaway's net income in April based on a flexible budget? O $20 750 O $21 750 O None of the other alternatives $31 750

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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