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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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