Reflector Glass Company prepared the following static budget for the year: Static Budget Units/Volume Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income/(Loss) 6,000 Per Unit $5.00 1.00 $30,000 6,000 24,000 4,000 $20,000 If a flexible budget is prepared at a volume of 9,000 units, calculate the amount of operating income. The production level is within the relevant range. OA. $32,000 OB. $4,000 OC. $9,000 OD. $20,000
Reflector Glass Company prepared the following static budget for the year: Static Budget Units/Volume Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income/(Loss) 6,000 Per Unit $5.00 1.00 $30,000 6,000 24,000 4,000 $20,000 If a flexible budget is prepared at a volume of 9,000 units, calculate the amount of operating income. The production level is within the relevant range. OA. $32,000 OB. $4,000 OC. $9,000 OD. $20,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Reflector Glass Company prepared the following static budget for the year:
Static Budget
Units/Volume
Sales Revenue
Variable Costs
Contribution Margin
Fixed Costs
Operating Income/(Loss)
6,000
Per Unit
$5.00
1.00
$30,000
6,000
24,000
4,000
$20,000
If a flexible budget is prepared at a volume of 9,000 units, calculate the amount of operating income. The production level is within the relevant range.
OA. $32,000
OB. $4,000
OC. $9,000
OD. $20,000
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