If a flexible budget is prepared at a volume of 13,500 units, calculate the operating income. The production level is within the relevant range.
If a flexible budget is prepared at a volume of 13,500 units, calculate the operating income. The production level is within the relevant range.
Chapter7: Budgeting
Section: Chapter Questions
Problem 12PA: Before the year began, the following static budget was developed for the estimated sales of 100,000....
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Question
6
![Ibis Paper Company prepared the following static budget for November:
Static Budget
Units/Volume
11,000
Per Unit
Sales Revenue
$20.00
$220,000
66,000
Variable Costs
6.00
Contribution Margin
154,000
13,500
$140,500
Fixed Costs
Operating Income/(Loss)
If a flexible budget is prepared at a volume of 13,500 units, calculate the operating income. The production level is within the relevant range.
A. $140,500
O B. $154,000
OC. $189,000
O D. $175,500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F588b1606-a7cb-492f-b2c1-78dc429479a1%2Fee9497cb-8548-4c81-a26f-137713a6521f%2Fs7wwr3_processed.png&w=3840&q=75)
Transcribed Image Text:Ibis Paper Company prepared the following static budget for November:
Static Budget
Units/Volume
11,000
Per Unit
Sales Revenue
$20.00
$220,000
66,000
Variable Costs
6.00
Contribution Margin
154,000
13,500
$140,500
Fixed Costs
Operating Income/(Loss)
If a flexible budget is prepared at a volume of 13,500 units, calculate the operating income. The production level is within the relevant range.
A. $140,500
O B. $154,000
OC. $189,000
O D. $175,500
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