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

question 156

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 $65,000.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:

Nausea

A sensation of unease and discomfort in the upper stomach with an involuntary urge to vomit.

Weight Gain

refers to an increase in body weight, which can result from various factors including increased muscle mass, fat deposits, or fluid retention.

Insulin

A hormone produced by the pancreas that regulates blood glucose levels by promoting the uptake of glucose into cells.

Stored Fat

Body fat that is accumulated and stored within the body, serving as an energy reserve.