Reference no: EM132976850

Question - The following static budget is provided:

Static Budget Total at 15,000 units

Sales $900,000

Manufacturing costs (30) (450,000)

Per Unit $60

Less variable costs:

Selling and administrative costs (10) (150,000)

Contribution margin $20 $300,000

Less fixed costs:

Manufacturing costs (75,000)

Selling and administrative costs (125,000)

Total fixed costs (200,000)

Net income $100,000

Required - What will be the net income at flexible budget at 13,000 units produced and sold?

a. $60,000

b. $65,000

c. $55,000

d. $40,000