Ibis Paper Company Prepared the Following Static Budget for November

question 179

Multiple Choice

Ibis Paper Company prepared the following static budget for November: $\begin{array}{|l|l|r|}\hline \text { Static Budget } & & \\\hline \text { Units/Volume } & & 12,000 \\\hline & \text { Per Unit } & \\\hline \text { Sales Revenue } & \$ 21,00 & \$ 252,000 \\\hline \text { Variable Costs } & 3.00 & \underline{96,000} \\\hline \text { Contribution Margin } & & 156,000 \\\hline \text { Fixed Costs } & & \underline{\underline{13,000}} \\\hline \text { Operating Income/(Loss) } & & \underline{\$ 143,000} \\\hline\end{array}$ If a flexible budget is prepared at a volume of 13,300 units,calculate the operating income.The production level is within the relevant range.

• A) $172,900
• B) $156,000
• C) $143,000
• D) $159,900

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Definitions:

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Electrical and chemical signals transmitted by neurons to communicate information throughout the body and brain.

Auditory Nerve

The cranial nerve that transmits sound information from the cochlea of the inner ear to the brain.

Information-Processing Theory

A cognitive approach that likens the mind to a computer, focusing on how information is taken in, stored, and retrieved.

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The process by which information is encoded, stored, and retrieved, allowing experiences to be remembered over time.