This Question: 1 pt 34 of 34 (27 complete) This Quiz: 34 pts possible Summer Nig

Question

This Question: 1 pt 34 of 34 (27 complete) This Quiz: 34 pts possible Summer Nights sells bottles of bug spray for $6.50 each. Variable costs are $3.00 per bottle, while fixed costs are $44,000 per month for volumes up to 30,000 bottles of spray and $54,000 per month for volumes above 30,000 bottles of spray. The flexible budget would reflect monthly operating income for 19,000 bottles of spray and 24,000 bottles of spray of what dollar amounts? O A. $79,500 and $40,000, respectively O B. S22.500 and $40,000, respectively ° C. Si 2.500 and S102.000, respectively O D. $123,500 and $156,000, respectively

Explanation / Answer

Per unit 19000 bottles 24000 bottles Sales 6.5 123500 156000 Variable expenses 3 57000 72000 Contribution margin 3.5 66500 84000 Fixed expenses 44000 44000 Operating income 22500 40000 Option B is correct

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