Ibis Company Prepared the Following Static Budget for the Coming

question 48

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 13,000 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:

Consumer Protection

Laws and strategies designed to ensure the rights of consumers, as well as fair trade, competition, and accurate information in the marketplace.

Negotiable Instruments

Financial documents that guarantee the payment of a specified amount of money, either on demand or at a set time.

Transferring Funds

The act of moving money from one account to another, across individuals, businesses, or banking institutions.

Retake Possession

The act of reclaiming ownership or control of property or assets, often legally after a breach of agreement or law.