Summer Nights Sells Bottles of Bug Spray for $8

question 215

Multiple Choice

Summer Nights sells bottles of bug spray for $8.00 each. Variable costs are $2.00 per bottle, while fixed costs are $40,000 per month for volumes up to 40,000 bottles of spray and $58,000 per month for volumes above 40,000 bottles of spray. The flexible budget would reflect monthly operating income for 10,000 bottles of lotion and 22,000 bottles of lotion of what dollar amounts?

• A)$40,000 and $92,000, respectively
• B)$20,000 and $92,000, respectively
• C)$80,000 and $176,000, respectively
• D)$2000 and $118,000, respectively

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