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Question - Ames Golf Company used the following data to evaluate their current operating system. The company sells 1 pack of golf balls for $10 per pack. The $10 selling price is also the budgeted selling price.
Budgeted
Actual
Units Sold
1,000,000
990,000
Variable Costs
$3,000,000
$2,500,000
Fixed Costs
$1,800,000
$1,850,000
Required - What operating income would be expected on Ames' flexible budget?
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