The Following Static Budget Is Provided What Will Be the Budgeted Net Income If 18,000 Units

question 65

Multiple Choice

The following static budget is provided: $\begin{array}{l}\begin{array}{lll}Units&& 20,000 units \\\hline Sales& \$ & 200,000\\Less variable costs:\\\text { Manufacturing costs } & \$ & 70,000 \\\text { Selling and administrative costs } && 40.000 \\\hline \text { contribution Margin } & \$ & 90,000\end{array}\\\text { Less fixed costs: }\\\begin{array}{lll}\text { Manufacturing costs } & \$ & 22,000 \\\text { Selling and administrative costs } & \$ & 17,000 \\\text { net income } & \$ & 51,000\end{array}\end{array}$ What will be the budgeted net income if 18,000 units are produced and sold?

• A) $31,000
• B) $180,000
• C) $400,000
• D) $42,000