Rockwell Corporation Manufactures and Sells Computer Keyboards

question 149

Multiple Choice

Rockwell Corporation manufactures and sells computer keyboards.The keyboard sells for $55 per unit and its variable costs per unit are $42.Fixed costs are $80,000 per month for sales volumes up to 40,000 keyboards.If more than 40,000 keyboards are sold,the fixed costs will be $110,000.The flexible budget would reflect what monthly operating income for a sales volume of 52,000 keyboards?

• A)$ 566,000
• B)$ 676,000
• C)$ 596,000
• D)$2,860,000

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