Ibis Company Prepared the Following Static Budget for the Coming

question 131

Multiple Choice

Ibis Company prepared the following static budget for the coming month:
$\begin{array}{|l|l|r|}\hline \text { Static Budget } & & \\\hline \text { Units/volume } & & 12,000 \\\hline & \text { Per Unit } & \\\hline \text { Sales revenue } & \$ 20.00 & \$ 240,000 \\\hline \text { Variable expenses } & \$ 9.00 & 108,000 \\\hline \text { Contribution margin } & & 132,000 \\\hline \text { Fixed expenses } & & 130,000 \\\hline \text { Operating income/(1oss) } & & \$ 2,000 \\\hline\end{array}$
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If a flexible budget was prepared at a volume of 14,000 units, how much would the operating income be?

• A) $22,000
• B) $17,500
• C) $24,000
• D) $13,000

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Definitions:

Influence Study's Results

Factors or variables that can affect the outcome or findings of a research study.

Randomly Assign Participants

A method used in experiments where individuals are assigned to groups in a way that each participant has an equal chance of being placed in any group, reducing bias and variability.

Research Creativity

The novel and useful contribution to a field of study through the exploration and investigation of unknown territories or ideas.

Interpret Results

The process of making sense of data or outcomes from experiments, studies, or analyses, often to determine their significance or implications.