Based on a Predicted Level of Production and Sales of 30,000

question 40

Multiple Choice

Based on a predicted level of production and sales of 30,000 units,a company anticipates total contribution margin of $105,000,fixed costs of $40,000,and operating income of $52,000.Based on this information,the budgeted operating income for 28,000 units would be:

• A)$52,000.
• B)$135,333.
• C)$58,000.
• D)$72,500.
• E)$105,000.

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Definitions:

Note Payable

A written promise to pay a certain amount of money on demand or at a fixed or determinable future time.

Unearned Fees

Income received for services that have not yet been performed or delivered.

Monthly Salary

A fixed amount of payment received by an employee from an employer on a monthly basis.

Unused Supplies

Supplies that have been purchased but not yet used in the operation of a business.