Allen Manufacturing makes staplers. The budgeted selling price is $15 per stapler, the variable...
Question:
Allen Manufacturing makes staplers. The budgeted selling price is $15 per stapler, the variable costs are $4 per stapler, and the budgeted fixed costs are $14,000. What is the budgeted operating income for 4,000 staplers?
A) $30,000
B) $28,000
C) $60,000
D) $68,000
Budgeting:
In the context of accounting, the budgeting activity is usually carried out for the forthcoming year to keep a track of metrics such as expenses, revenues, income, and cash flows. One can even calculate the variances by comparing the budgeted values with the actual values.
Answer and Explanation: 1
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View this answerThe correct answer is option A) $30,000.
The budgeted contribution margin per unit is given by:
- = Budgeted selling price per unit - variable cost...
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Preparing a Budgeted Income Statement
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