Based on a Predicted Level of Production and Sales of 12,000

question 101

Multiple Choice

Based on a predicted level of production and sales of 12,000 units, a company anticipates reporting operating income of $26,000 after deducting variable costs of $72,000 and fixed costs of $10,000. Based on this information, the budgeted amounts of fixed and variable costs for 15,000 units would be:

• A) $10,000 of fixed costs and $72,000 of variable costs.
• B) $10,000 of fixed costs and $90,000 of variable costs.
• C) $12,500 of fixed costs and $90,000 of variable costs.
• D) $12,500 of fixed costs and $72,000 of variable costs.
• E) $10,000 of fixed costs and $81,000 of variable costs.

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Definitions:

Indirect Strategy

A communication approach where the main point or message is not presented immediately but is preceded by background information or explanations.

Reasons

Causes or explanations for acts or decisions.

Explanations

Statements or accounts that make something clear or understandable by describing the reasons or causes.

Digital Media Services

Services that provide content or activities through digital platforms such as the internet, including streaming, social media, and online marketing.