Reference no: EM133028189

Question - Sunny Dayz sells bottles of sun screen lotion for $14.00 each. Variable costs are $8.50 per bottle, while fixed costs are $45,000 per month for volumes up to 20,000 bottles of lotion and $55,000 per month for volumes above 20,000 bottles of lotion. The flexible budget would reflect monthly operating income for 16,000 bottles of lotion and 24,000 bottles of lotion of what dollar amounts?

a) $43,000 and $77,000, respectively

b) $179,000 and $281,000, respectively

c) $33,000 and $87,000, respectively

d) $55,000 and $65,000, respectively

e) $169,000 and $291,000, respectively