Reference no: EM132527530
Question 1: Based on a predicted level of production and sales of 12,000 units, a company anticipates reporting operating income of $28,000 after deducting variable costs of $72,000 and fixed costs of $8,000. Based on this information, the budgeted amounts of fixed and variable costs for 15,000 units would be:
Option 1 : $8,000 of fixed costs and $81,000 of variable costs.
Option 2 : $8,000 of fixed costs and $72,000 of variable costs.
Option 3 : $10,000 of fixed costs and $90,000 of variable costs.
Option 4 : $10,000 of fixed costs and $72,000 of variable costs.
Option 5 : $8,000 of fixed costs and $90,000 of variable costs.
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