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

question 80

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

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Definitions:

Accounts Payable

The amounts a company owes because it purchased goods or services on credit from a supplier or vendor.

Required Production

The quantity of products that must be manufactured or produced to meet customer demand.

Units

A measure of quantity used to express the amount of product made or available.

Unit Product Cost

The total cost incurred to produce, manufacture, or acquire a product, divided by the number of units produced, representing the cost per individual unit.