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Outdoor Creations Sells Its Patio Heaters for $300 Each

question 151

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Outdoor Creations sells its patio heaters for $300 each. Its variable cost is $220 per heater. Fixed costs are $40,000 per month for volumes up to 1,000 heaters. Above 1,000 heaters, monthly fixed costs are $62,000.
-Universal Remotes makes remote controls for home theater systems. The budgeted selling price is $125 per remote control, the variable cost is $112 per remote control and budgeted fixed costs are $110,000 per month. What is the budgeted operating income for 12,000 remote controls sold in a month?

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Definitions:

Kidney Stone

Hard, crystalline mineral material formed within the kidney or urinary tract, often causing pain when passed.

Nephroma

A benign or malignant tumor arising from kidney tissue.

Ureter

A tube that carries urine from the kidneys to the bladder.

Hilum

A depression or opening in the surface of an organ where blood vessels, nerves, and other structures enter or leave.

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