Based on a Predicted Level of Production and Sales of 22,000

question 119

Multiple Choice

Based on a predicted level of production and sales of 22,000 units,a company anticipates total variable costs of $99,000,fixed costs of $30,000,and operating income of $36,000.Based on this information,the budgeted amount of contribution margin for 20,000 units would be:

• A)$99,000.
• B)$90,000.
• C)$66,000.
• D)$150,000.
• E)$60,000.

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Definitions:

Mutual Funds

Mutual funds are investment vehicles that pool money from numerous investors to purchase a diversified portfolio of stocks, bonds, or other securities.

U.S. Treasury Bonds

Long-term debt securities issued by the United States Department of the Treasury with a maturity of more than ten years.

Equity Mutual Fund

A corporation that pools the funds of investors, including small investors, and uses them to purchase a bundle of stocks.

U.S. Households

Living arrangements in the United States that include all the people who occupy a housing unit, such as families, roommates, or individuals living alone.