Windsor Limited Makes and Sells a Single Product -What Is the Company's Master Budget Operating Income (Loss)for April

question 13

Multiple Choice

Windsor Limited makes and sells a single product. The company employs a flexible budgeting system that covers a relevant range from 20,000 units to 25,000 units and a just in time inventory system. Budget data for April, based on 22,000 units, are as follows:
$\begin{array} { | l | r | } \hline \text { Prime costs } & \$ 30 \text { per unit } \\\hline \text { Manufacturing overhead } & \$ 132,000 \text { plus } \$ 3 \text { per unit } \\\hline \text { Selling and administrative expenses } & \$ 30,000 \text { plus } \$ 2 \text { per unit } \\\hline \text { Selling price } & \$ 60 \text { per unit } \\\hline\end{array}$

-What is the company's master budget operating income (loss) for April?

• A) $388,000.
• B) $463,000.
• C) $550,000.
• D) $625,000.

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Definitions:

Guest-Country National

An individual who is a citizen of the country in which an international company operates, but the company is based in another country.

Third Country

A nation that is neither the home country of the company nor the host country where it operates; it's an unrelated, third-party country.

Parent Country

The country in which a multinational company's headquarters is located.

Long-Term Orientation

A cultural or organizational perspective that values long-range planning, perseverance, and savings for future betterment.