Krazy Kayaks Sells Its Entry-Level Kayaks for $650 Each

question 175

Multiple Choice

Krazy Kayaks sells its entry-level kayaks for $650 each. Its variable cost is $300 per kayak. Fixed costs are $21,000 per month for volumes up to 1700 kayaks. Above 1700 kayaks, monthly fixed costs are $60,000. What is the budgeted operating income at a level of 400 kayaks per month?

• A)$119,000
• B)$140,000
• C)$239,000
• D)$80,000

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Definitions:

Medical Knowledge

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Nineteenth Century

The period from January 1, 1801, to December 31, 1900, marked by significant industrial, cultural, and political changes worldwide, including the Industrial Revolution and the expansion of empires.

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Confederate Capital

The city designated as the administrative and political center of the Confederate States of America during the American Civil War; initially Montgomery, Alabama, before moving to Richmond, Virginia.