Find the budgeted amounts of fixed and variable costs

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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.

Reference no: EM132527530

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