The Following Static Budget Is Provided What Will Budgeted Net Income Equal If 21,000 Units Are

question 99

Multiple Choice

The following static budget is provided: $\begin{array}{|l|l|ll|} \hline \text {Units} &\text { } && \underline { 20,000 \text { units } }\\\hline \text { Sales } &\text { } &\$ & 200,000 \\\hline \text { Less variable costs: } \\\hline \text { } &\text { Manufacturing costs } &\$ & 70,000 \\\hline \text { } &\text { Selling and administrative costs } &\$ & \underline { 40,000 }\\\hline \text { Contribution Margin } &\text { } &\$ & 90,000 \\\hline \text {Less fixed costs:} \\\hline \text { } &\text { Manufacturing costs } &\$ & 22,000 \\\hline \text { } &\text {Selling and administrative costs } &\$ & \underline { 17,000 }\\\hline \text { Net Income } &\text { } &\$ &\underline { 51,000}\\\hline \end{array}$ What will budgeted net income equal if 21,000 units are produced and sold? (Do not round intermediate calculations. )

• A) $53,550
• B) $55,500
• C) $94,500
• D) $210,000

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Definitions:

Persons

Human beings regarded as individuals or entities capable of owning property, having rights and responsibilities, and engaging in legal contracts and activities.

Partnership

An official business model that involves a collaboration between two or more people sharing both profits and management duties.

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The failure to exercise the standard of care that a reasonably prudent person would have exercised in a similar situation, leading to potential harm or loss.

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A business structure where a single individual owns, operates, and is responsible for all aspects of the business.