Southern Instruments Makes Calculators for Business Applications

question 26

Multiple Choice

Southern Instruments makes calculators for business applications.The budgeted selling price is $120 per calculator,the variable rate is $98 per calculator and budgeted fixed costs are $150,000 per month.What is the budgeted operating income for 15,000 calculators sold in a month?

• A)$330,000
• B)$1,620,000
• C)$1,800,000
• D)$180,000

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Definitions:

Title Fees

Fees associated with the transfer of ownership or establishing the title of a property, often incurred during buying or selling.

Property, Plant, Equipment

Tangible long-term assets used in the operation of a business, such as buildings and machinery.

Automobile Dealership

A business that sells new or used cars at the retail level, typically based on a dealership contract with an automaker or sales subsidiary.

Land Improvements

Enhancements to a plot of land such as landscaping, fencing, and utilities, which increase the property's value.