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MalikaJones
06.12.2019 •
Business
Sitz company makes chairs. the budgeted selling price is $55 per chair, the variable rate is $25 per chair and budgeted fixed costs are $20,000 per month. what is the budgeted operating income for 3,100 chairs sold in a month?
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Ответ:
$73,000
Explanation:
Data provided in the question:
Selling Price per unit = $55
Variable rate per unit = $15
Budgeted fixed costs = $20,000
Number of chairs sold = 3,100
Now,
Contribution per unit = Selling Price per unit - Variable rate per unit
= $55 - $25
= $30
Therefore,
Total contribution = Contribution per unit × Number of chairs sold
= $30 × 3,100
= $93,000
Hence,
Operating income = Total contribution - Budgeted fixed costs
= $93,000 - $20,000
= $73,000
Ответ: