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172) Peddlin' Pete's Cycles sells its entry-level bicycles for $400 each. Its variable cost is $250 per bicycle. Fixed costs are $35,000 per month for volumes up to 1,200 bicycles. Above 1,200 bicycles, monthly fixed costs are $55,000. What is the budgeted operating income at a level of 900 bicycles per month?

A) $100,000

B) $135,000

C) $325,000

D) $80,000

173) Peddlin' Pete's Cycles sells its entry-level bicycles for $400 each. Its variable cost is $250 per bicycle. Fixed costs are $35,000 per month for volumes up to 1,200 bicycles. Above 1,200 bicycles, monthly fixed costs are $55,000. What is the budgeted operating income at a level of 1,300 bicycles per month?

A) $195,000

B) $465,000

C) $140,000

D) $160,000

174) Southern Instruments makes calculators for business applications. The budgeted selling price is $120 per calculator, the variable rate is $98 per calculator and budgeted fixed costs are $150,000 per month. What is the budgeted operating income for 15,000 calculators sold in a month?

A) $330,000

B) $1,620,000

C) $1,800,000

D) $180,000

175) Davis Corporation manufactures and sells portable radios. The radio sells for $35 per unit and its variable costs per unit are $30. Fixed costs are $64,000 per month for sales volumes up to 32,000 radios. If more than 32,000 radios are sold, the fixed costs will be $83,000. The flexible budget would reflect what monthly operating income for a sales volume of 41,000 radios?

A) $141,000

B) $122,000

C) $1,435,000

D) $205,000

176) Sound Design sells its computer speakers for $115 per set. Its variable cost is $75 per set of speakers. Fixed costs are $80,000 per month for volumes up to 2,400 sets of speakers. Above 2,400 sets, monthly fixed costs are $115,000. What is the budgeted operating income (loss) at a sales level of 2,300 sets of speakers per month?

A) Operating loss of $23,000

B) Operating income of $92,000

C) Operating income of $12,000

D) Operating income of $184,500

177) Sound Design sells its computer speakers for $115 per set. Its variable cost is $75 per set of speakers. Fixed costs are $80,000 per month for volumes up to 2,400 sets of speakers. Above 2,400 sets, monthly fixed costs are $115,000. What is the budgeted operating income (loss) at a sales level of 2,600 sets of speakers per month?

A) Operating loss of $11,000

B) Operating income of $104,000

C) Operating income of $24,000

D) Operating income of $184,000

178) Civic Corporation provided the following partially completed monthly flexible budget. Complete the flexible budget.

179) Thomas Corporation sells a unit of its product for $12.00, resulting in a contribution margin of $7.00 per unit. Fixed costs are budgeted at $50,000 per quarter for volumes up to 12,000 units and $80,000 for volumes exceeding 12,000 units.

Prepare the flexible budget for the next quarter for volume levels of 11,000, 13,000, and 16,000 units.

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Accounting 4 Months Ago 15 Views
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