Product A has a sales price of $16.0 per unit. Based on a 22,000-unit production level, the variable costs are $9.00 per unit and the fixed co

Product A has a sales price of $16.0 per unit. Based on a 22,000-unit production level, the variable costs are $9.00 per unit and the fixed costs are $6.00 per unit. Using a flexible budget for 24,500 units, what is the budgeted operating income from Product A?

	$132,000
	$49,000
	$137,000
	$24,500
	$39,500

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Product A has a sales price of $16.0 per unit. Based on a 22,000-unit production level, the variable costs are $9.00 per unit and the fixed costs are $6.00 per unit. Using a flexible budget for 24,500 units, what is the budgeted operating income from Product A?
Budgeted operating income from Product A = 16*24500 - 9*24500 - 6*22000
Budgeted operating income from Product A = $ 39500
Answer
E) 39500