Myer Appliances Sells Its Microwave Ovens for $110 Each

question 196

Multiple Choice

Myer Appliances sells its microwave ovens for $110 each. Its variable cost is $65 per microwave oven. Fixed costs are $90,000 per month for volumes up to 2,000 microwave ovens. Above 2,000 microwave ovens, monthly fixed costs are $135,000.
-.What is the Myer Appliances' budgeted operating income (loss) at a sales level of 2,500 microwave ovens per month?

• A) Operating loss of $22,500
• B) Operating income of $22,500
• C) Operating income of $112,500
• D) Operating income of $140,000

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Definitions:

Cognitive Strategies

Techniques or methods employed to facilitate learning and improve performance by enhancing the mental processes involved in learning, such as understanding, memory, and problem-solving.

Generalized Transfer

The application of skills, knowledge, or competencies acquired in one context to different, but related, contexts or situations.

Learning

The acquisition of knowledge or skills through study, experience, or being taught.

Social Cognitive Theory

A framework for understanding, predicting, and changing human behavior, emphasizing the role of observational learning, self-efficacy, and the social environment.