Reference no: EM132951157

Problem 1: Sunny Dayz sells bottles of sun screen lotion for $12.00 each. Variable costs are $7.50 per bottle, while fixed costs are $46,000 per month for volumes up to 20,000 bottles of lotion and $58,000 per month for volumes above 20,000 bottles of lotion. The flexible budget would reflect monthly operating income for 19,000 bottles of lotion and 21,000 bottles of lotion of what dollar amounts?

a) $170,000 and $206,000, respectively

b) $27,500 and $48,500, respectively

c) $39,500 and $36,500, respectively

d) $32,000 and $44,000, respectively

e) $182,000 and $194,000, respectively