If Carlos actually produced 4,100 units, the flexible budget would show fixed costs amounting to

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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4th option: none of the above.
### Budget Analysis for Carlos Candies, Inc.

The cost accountant for Carlos Candies, Inc. prepared the following static budget based on an expected activity of 5,800 units:

- **Revenues:** $204,000
- **Variable Costs:** $153,700
- **Contribution Margin:** $50,300
- **Fixed Costs:** $27,500
- **Net Income:** $22,800

#### Scenario Analysis

If Carlos actually produced 4,100 units, the flexible budget would show fixed costs amounting to:

**Multiple Choice Options:**
- $29,300
- $27,500
- $181,200
Transcribed Image Text:### Budget Analysis for Carlos Candies, Inc. The cost accountant for Carlos Candies, Inc. prepared the following static budget based on an expected activity of 5,800 units: - **Revenues:** $204,000 - **Variable Costs:** $153,700 - **Contribution Margin:** $50,300 - **Fixed Costs:** $27,500 - **Net Income:** $22,800 #### Scenario Analysis If Carlos actually produced 4,100 units, the flexible budget would show fixed costs amounting to: **Multiple Choice Options:** - $29,300 - $27,500 - $181,200
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