Universal Remotes Makes Remote Controls for Home Theater Systems

question 147

Multiple Choice

Universal Remotes makes remote controls for home theater systems.The budgeted selling price is $125 per remote control,the variable rate 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?

• A)$ 156,000
• B)$1,454,000
• C)$ 46,000
• D)$1,500,000

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Definitions:

Operating Activities

Actions and transactions related to the core business operations, such as sales and the production of goods or services.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from the total revenue.

Income Taxes Payable

Income Taxes Payable are the taxes that a company owes to the government, which have been incurred but not yet paid, appearing as a current liability on the balance sheet.

Operating Activities

The day-to-day actions related to running a business, encompassing sales, provision of services, and expenses that affect the company's net income.