Use the Information Below to Answer the Following Question(s)

question 14

Multiple Choice

Use the information below to answer the following question(s) .Ames Golf Company used the following data to evaluate their current operating system.The company sells 1 pack of golf balls for $10 per pack.The $10 selling price is also the budgeted selling price.
-What is the budgeted operating income for Ames Golf Company?

• A)$7,000,000
• B)$5,970,000
• C)$5,550,000
• D)$5,200,000
• E)$4,750,000

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Definitions:

Goods Purchased

The total value of all goods bought by a company for resale or for use in production.

Manufacturing Overhead

All the indirect costs associated with manufacturing a product, including indirect materials, labor, and expenses such as utilities and rent.

Product Costs

Product costs are the costs directly attributed to the creation of a product, including materials, labor, and overhead.

Direct Materials

Raw materials that can be directly identified with the production of specific goods or services.