Sound Design Sells Its Computer Speakers for $135 Per Set

question 96

Multiple Choice

Sound Design sells its computer speakers for $135 per set. Its variable cost is $85 per set of speakers. Fixed costs are $85,000 per month for volumes up to 2600 sets of speakers. Above 2600 sets, monthly fixed costs are $126,000. What is the budgeted operating income (loss) at a sales level of 2200 sets of speakers per month?

• A)Operating loss of $16,000
• B)Operating income of $110,000
• C)Operating income of $25,000
• D)Operating income of $212,000

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Definitions:

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The scientific principle that living organisms are only produced by other living organisms.

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The importance of a biological finding or phenomenon in terms of its implications for the survival, function, or evolution of living organisms.