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Question 1: Based on a predicted level of production and sales of 20,000 units, a company anticipates total variable costs of $88,000, fixed costs of $32,000, and operating income of $140,800. Based on this information, the budgeted amount of fixed costs for 18,000 units would be:
Multiple Choice
Option 1: $79,200
Option 2: $143,200.
Option 3: $172,800.
Option 4: $32,000.
Option 5: $88,000
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