Sound Design Sells Its Computer Speakers for $115 Per Set

question 157

Multiple Choice

Sound Design sells its computer speakers for $115 per set.Its variable cost is $75 per set of speakers.Fixed costs are $80,000 per month for volumes up to 2,400 sets of speakers.Above 2,400 sets,monthly fixed costs are $115,000.What is the budgeted operating income (loss) at a sales level of 2,600 sets of speakers per month?

• A)Operating loss of $11,000
• B)Operating income of $104,000
• C)Operating income of $24,000
• D)Operating income of $184,000

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Definitions:

HPV

Human Papillomavirus, a common viral infection that can lead to various health problems, including genital warts and certain cancers.

Microbes

Microscopic organisms, including bacteria, viruses, fungi, and algae, that live all around us and can have both beneficial and harmful effects on human health.

Genital Warts

A sexually transmitted infection caused by certain strains of human papillomavirus (HPV), characterized by the appearance of warts on the genital area.

HPV

Human papillomavirus, a virus from the papillomavirus family that can lead to genital warts and is associated with many types of cancers.