A Packaging Company Produces Cardboard Boxes in an Automated Process

question 10

Multiple Choice

A packaging company produces cardboard boxes in an automated process. The required direct materials costs $0.30 per unit. Fixed manufacturing overhead costs are budgeted at $24,000 per month and are allocated based on units of production. The budgeted contribution margin per unit is $0.85, and administration fixed costs are budgeted at $7,500 per month.What is the flexible-budget amount for operating income for 40,000 and 20,000 units, respectively?

• A) $26,000; $20,000
• B) $36,000; $30,000
• C) $44,000; $38,000
• D) $2,500; <$14,500>

---

Definitions:

Email Field

A designated input area within a form or database for capturing a user's email address.

New York

A state in the northeastern United States, known for its significant cultural, financial, and media influence globally.

City Field

An input field in a form or database specifically reserved for entering the name of a city.

Table Datasheet View

A graphical interface in databases that facilitates the viewing and management of records in table format, acting like an interactive spreadsheet.