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Question - Cox Manufacturing Company prepared the following static budget income statement :
Sales Revenue $125,000
Variable Costs (75,000)
Contribution Margin 50,000
Fixed Cost (30,000)
Net income $20,000
The static budget was based on an expected sales volume of 5,000 units. Actual sales volume was 6,000 units.
What the budgeted amount of net income based on a flexible budget of 6,000 units?
a. $24,000.
b. $26,000.
c. $30,000
d. $45,000.
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