Jones Company Developed the Following Static Budget at the Beginning

question 66

Multiple Choice

Jones Company developed the following static budget at the beginning of the company's accounting period: $\begin{array}{lr}\text { Revenue ( } 8,000 \text { units) } & \$ 16,000 \\\text { Variable costs } & \underline{ 4,000} \\\text { Contribution margin } & \$ 12,00 \\\text { Fixed costs } & \underline{4,000 }\\\text { Net income } & \underline{\$ 8,000}\end{array}$

If actual production totals 8,200 units, the flexible budget would show total costs of:

• A) $8,000.
• B) $8,100.
• C) $8,200.
• D) None of these is correct.

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Definitions:

Unanimous Shareholders' Agreement

An agreement among all shareholders of a corporation, often detailing the management, control, and direction of the corporation's affairs.

No Restrictions

A condition or status where there are no limitations, constraints, or regulations imposed on actions or activities.

Fiduciary Duty

A legal obligation for one party to act in the best interest of another party, such as a trustee for a beneficiary.

Legislative Requirements

Obligations or conditions laid down by law that must be complied with by individuals or organizations.