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Question 1: NewStar Bedding makes pillow cases. The budgeted selling price is $9 per pillow case, the variable costs are $2 per pillow case, and fixed costs are $8,000. What is the budgeted operating income for 7,000 pillow cases?
Option A. $14,000
Option B. $41,000
Option C. $49,000
Option D. $63,000
The following financial statements were drawn from the records of Boston Materials, Inc.:
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