The Following Is a Summarized Master Budget That Winnipeg Company

question 74

Multiple Choice

The following is a summarized master budget that Winnipeg Company prepared for January:
$\begin{array}{|l|r|r|}\hline \text { Sales } & & 9,000 \text { units } \\\hline \text { Sales revenue } & \$ 450,000 \\\hline \text { Less variable costs: } & & \\\hline \text { Manufacturing } & \$ 270,000 & \\\hline \text { Selling and administrative } & \underline{18,000} & \underline{288,000} \\\hline \text { Contribution } & & \$ 162,000 \\\hline \text { Less fixed costs: } & & \\\hline \text { Manufacturing } & 72,000 & \\\hline \text { Selling and administrative } & \underline{27,000} & \underline{99,000} \\\hline \text { Operating income } & & \$ 63,000 \\\hline\end{array}$

$\text { Actual results for January were as follows: }$

$\begin{array}{|l|r|}\hline \text { Units produced and sold } & 8,500 \text { units } \\\hline \text { Selling price per unit } & \$ 55.00 \\\hline \text { Variable costs per unit: } & \\\hline \text { Manufacturing } & \$ 32.00 \\\hline \text { Selling and administrative } & \$ 1.50 \\\hline \text { Total fixed costs } & \$ 99,000\\\hline\end{array}$

-What was the master budget operating income for February?

• A) $23,000.
• B) $25,000.
• C) $35,000.
• D) $33,000.

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Definitions:

Neutral Stimulus

An environmental event that initially does not elicit any intrinsic response until it is associated with an unconditioned stimulus, leading to a conditioned response.

Pavlov

A Russian physiologist known for his research in classical conditioning, demonstrating how stimuli can trigger a conditioned response.

Salivation

The secretion of saliva, often triggered by the sight, smell, or taste of food, preparing the mouth for digestion.

Acquisition

The process of acquiring or gaining knowledge, skills, or objects. In psychology, it often refers to the initial stages of learning.