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7 years ago
Speedy Bikes Couriers Company prepared the following static budget for the year:

Static Budget      
Units/Volume      5,000
   Per Unit   
Sales Revenue   $7.00   $35,000
Variable Costs    1.50   7,500
Contribution Margin      27,500
Fixed Costs      4,000
Operating Income/(Loss)      $23,500

If a flexible budget is prepared at a volume of 8,400, calculate the amount of operating income.  The production level is within the relevant range.
A) $42,200
B) $23,500
C) $4,000
D) $12,600
Textbook 
Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
Authors:
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#2
7 years ago
Will mark this subject solved, thanks
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#3
3 years ago
Thanks
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