Windsor Limited Makes and Sells a Single Product -Suppose the Company Produces and Sells 25,000 Units Instead of Employs

question 83

Multiple Choice

Windsor Limited makes and sells a single product. The company employs a flexible budgeting system that covers a relevant range from 20,000 units to 25,000 units and a just in time inventory system. Budget data for April, based on 22,000 units, are as follows:
$\begin{array} { | l | r | } \hline \text { Prime costs } & \$ 30 \text { per unit } \\\hline \text { Manufacturing overhead } & \$ 132,000 \text { plus } \$ 3 \text { per unit } \\\hline \text { Selling and administrative expenses } & \$ 30,000 \text { plus } \$ 2 \text { per unit } \\\hline \text { Selling price } & \$ 60 \text { per unit } \\\hline\end{array}$

-Suppose the company produces and sells 25,000 units instead of the original 22,000 units at an average selling price of $55.What is the company's flexible budget operating income (loss) for April,given the actual sales volume of 25,000 units?

• A) $388,000.
• B) $463,000.
• C) $550,000.
• D) $625,000.

---

Definitions:

Colostomy

A surgical procedure where a portion of the large intestine is brought through an opening in the abdominal wall to create a stoma for waste elimination.

Benign Tumor

A non-cancerous growth that does not invade nearby tissues or spread to other parts of the body.

Body Image Stressor

Factors or situations that negatively affect an individual's perception and satisfaction with their body size or shape.

Erikson's Developmental Tasks

A psychosocial theory proposing that individuals go through eight developmental stages, each characterized by a specific challenge, from infancy to late adulthood.