Peddlin' Pete's Cycles Sells Its Entry-Level Bicycles for $400 Each

question 27

Multiple Choice

Peddlin' Pete's Cycles sells its entry-level bicycles for $400 each.Its variable cost is $250 per bicycle.Fixed costs are $35,000 per month for volumes up to 1,200 bicycles.Above 1,200 bicycles,monthly fixed costs are $55,000.What is the budgeted operating income at a level of 900 bicycles per month?

• A)$100,000
• B)$135,000
• C)$325,000
• D)$80,000

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Definitions:

Virtuous Citizenry

A concept in republican ideology that emphasizes the importance of citizens possessing virtue, such as honesty and civic responsibility, for the wellbeing of the state.

Abigail Adams

The wife of President John Adams and mother of President John Quincy Adams, known for her extensive letters advocating for women's rights.

Absolute Power

The complete and unrestricted control over all aspects of a state or organization, typically exercised by a monarch or a dictatorial regime.

Voting Rights

Legal rights designed to protect the ability of citizens to vote in elections and have their ballots counted.