A Packaging Company Produces Cardboard Boxes in an Automated Process

question 135

Multiple Choice

A packaging company produces cardboard boxes in an automated process.The required direct materials costs $0.30 per unit.Fixed manufacturing overhead costs are budgeted at $24,000 per month and are allocated based on units of production.The budgeted contribution margin per unit is $0.85, and administration fixed costs are budgeted at $7,500 per month.What is the flexible-budget amount for operating income for 40,000 and 20,000 units, respectively?

• A)$26,000; $20,000
• B)$36,000; $30,000
• C)$40,000; $34,000
• D)$44,000; $38,000
• E)$2,500; <$14,500>

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Definitions:

Atrial Fibrillation

A heart condition characterized by an irregular and often rapid heart rate that can increase the risk of strokes, heart failure, and other heart-related complications.

Cardiac Cycle

The sequence of mechanical and electrical events that repeats with every heartbeat, including the contraction and relaxation of the heart muscle to pump blood.

ECG

Electrocardiogram, a test that measures the electrical activity of the heart to assess its functioning and detect abnormalities.

Voltage Difference

The measure of electric potential difference between two points in an electric circuit, prompting the flow of current.