Reference no: EM132556802
Question 1: Firenze Company's fixed budget for the first quarter of the calendar year appears below. What would income from operations be at 22,000 units and 24,000 units.
Sales (20,000 units) $800,000
Cost of goods sold:
Direct materials $160,000
Direct labor $150,000
Variable overhead $100,000
Fixed overhead $120,000 $530,000
Gross profit $270,000
Selling expenses:
Sales commissions (all variable) $40,000
Advertising (all fixed) $50,000
General and administrative expenses:
Salaries (all fixed) $80,000
Rent (all fixed) $30,000
Depreciation (all fixed) $20,000 $220,000
Net income from operations $50,000