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Problem 1: Rockwell Corporation manufactures and sells computer keyboards. The keyboard sells for $55 per unit and its variable costs per unit are $42. Fixed costs are $80,000 per month for sales volumes up to 40,000 keyboards. If more than 40,000 keyboards are sold, the fixed costs will be $110,000. The flexible budget would reflect what monthly operating income for a sales volume of 52,000 keyboards?
Option 1: $2,860,000
Option 2: $566,000
Option 3: $596,000
Option 4: $676,000
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