Reflector Glass Company prepared the following static budget for the year:Static BudgetUnits/VolumeSales RevenueVariable CostsContribution MarginFixed CostsOperating Income/(Loss)5,000Per Unit$3$15,0001.57,5007,5003,000$4,500If a flexible budget is prepared at a volume of 8,500 units, calculate the amount of operating income. The productionlevel is within the relevant range.OA. $9,750B. $12,750OC. $3,000OD. $4,500

a. 9,750Explanation:Sales revenue = 8,500 x 3 per unit = 25,500 Total VC = 8,500 x 1.5 per unit =…

Answered: Reflector Glass Company prepared the…

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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