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Problem 1: Our company manufactures bird feeders. The budgeted sales price is $20 per unit, and the variable costs are $12 per unit. Budgeted fixed costs for the company are $15,000. What is the budgeted amount for operating income for 5,000 bird feeders?
a. $8.00 per unit
b. $60,000
c. $25,000
d. $15,000
Calculate the amount of cash flows from operating activities. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis)
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