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Question - Kevin Couriers Company prepared the following static budget for the year:
Static Budget
Units/Volume
5,000
Per Unit
Sales Revenue
$7.00
$35,000
Variable Costs
1.50
7,500
Contribution Margin
27,500
Fixed Costs
4,000
Operating Income /(Loss)
$23,500
If a flexible budget is prepared at a volume of 7,500, calculate the amount of operating income. The production level is within the relevant range.
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