Question

The ace company sells a single product at a budgeted price per unit of $45. Budgeted fixed manufactoring costs for the coming perood are $15,000, while budgeted fixed marketing expenses for the period are $26,500. Budgeted variable costs per unit include $7 of selling expenses (commision) and $9 of manufactoring costs. what is the budgeted operating income if the anticipatec sales volume for the period is:

1. 10,500 units

2. 15,500 units

Answer 1

Sel: © Computation of Budgeted operating Ancome when anticipalec Sales - 10,500 units. Budgeted. Profit Slatement byl put 10500 unity Sales (10500x$45) $ 472500 Less: Vaajable costi - Manufacturing cost (tusooxf9) ($94560) . -Selling expenses (10 sock$ 7! ($73560) Contribution $ 304500 Lexsi Fixed Costi - Manufacturing Cart ($15000) - Marketing expense ($ 26500) Ahed Budgeted operating ancome $263000 Hence, when the are compony Seller 10550 units, then Operating Incane Shall be $ 26.3800.

computation of Budgeted operating Ancome when anticipatec Sales > 15,500 unity, Budget Doolit statement output 15500 Unika. Sales (15560x$45) $6.97.500 Leas: Variable costi- - Manufacturing Cost (15560x $9) ($ 139,500) - Selling Barbense (15500 x $7) 1 $1,08,500) $4,49.500 Contribution Less; tired Coste: - - Manufacturing Cost ($ 15000) - Marketing expense ($ 26500) $ 4,08,000 Budgoled operating Income Hence, when the arce company Seller, 155500 units. then operating Income shall be $4,08,000