A company\'s flexible budget for 12,000 units of production reflects sales of $3

Question

A company's flexible budget for 12,000 units of production reflects sales of $300, 000; variable costs of $72,000; and fixed costs of $90, 000. Calculate the expected level of operating Income If the company produces and sells 15,000 units. $172,500. $138,000. $195,000. $147,000. $97,500. Junior Snacks reports the following information from its sales budget: All sales are on credit and are expected to be collected 45% in the month of sale and 55% in the month following sale. The total amount of cash expected to be received from customers in November is: $150,600. $80,850. $155,000. $235,850. $69,750.

Explanation / Answer

the answer for question 5. would be $172500

sales - variable cost - fixed cost= operating income

300000-72000-90000= 195000 for 12000 units and for 15000 units = 195000*15000/12000

= $172500

The answer for question no 11 is 150600

for October 55% expected to collect in November and for the november 45% to be collected in the month of november itself

so october 147000*55% = 80850

for november 155000*45% = 69750

total =150600

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