What is the budgeted operating income

Reference no: EM131956385

Problem

Peddlin' Pete's Cycles sells its entry-level bicycles for $400 each. Its variable cost is $250 per bicycle. Fixed costs are $35,000 per month for volumes up to 1, 200 bicycles. Above 1, 200 bicycles, monthly fixed costs are $55,000. What is the budgeted operating income at a level of 900 bicycles per month?

Reference no: EM131956385

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