A Company's Flexible Budget for 15,000 Units of Production Showed

question 106

Multiple Choice

A company's flexible budget for 15,000 units of production showed sales of $48,000, variable costs of $18,000, and fixed costs of $12,000. The operating income in the master budget for 20,000 units, to the nearest dollar, would be:

• A) $8,000.
• B) $13,500.
• C) $24,000.
• D) $28,000.
• E) $30,000.

---

Definitions:

Rental Housing

Properties available for rent, providing accommodation to tenants in exchange for regular payments to the landlord.

Price Controls

Government-imposed limits on the prices charged for goods and services in a market, aimed at maintaining affordability or preventing inflation.

Hurricane

A powerful tropical cyclone with heavy rain and strong winds, originating over warm ocean waters and potentially causing significant damage upon landfall.