Question
In: Accounting
Speedy Bikes Couriers Company prepared the following static budget for the year: Static Budget Units/Volume 6...
Speedy Bikes Couriers Company prepared the following static budget for the year: Static Budget Units/Volume 6 comma 000 Per Unit Sales Revenue $ 5 $ 30 comma 000 Variable Costs 1 6 comma 000 Contribution Margin 24 comma 000 Fixed Costs 4 comma 000 Operating Income/(Loss) $ 20 comma 000 If a flexible budget is prepared at a volume of 7 comma 500, calculate the amount of operating income. The production level is within the relevant range. A. $ 20 comma 000 B. $ 4 comma 000 C. $ 26 comma 000 D. $ 7 comma 500
Solutions
Expert Solution
| Sales Revenue | 37500 | =7500*5 |
| Less: Variable Costs | 7500 | =7500*1 |
| Contribution Margin | 30000 | |
| Less: Fixed Cost | 4000 | |
| Operating Income | 26000 | |
| Option C $26,000 is correct |
ekkarill92 answered 1 year agoRelated Solutions
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Reflector Glass Company prepared the following static budget for
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Static Budget
Units/Volume
6 comma 0006,000
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Sales Revenue
$ 5.00$5.00
$ 30 comma 000$30,000
Variable Costs
1.501.50
9 comma 0009,000
Contribution Margin
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Fixed Costs
4 comma 0004,000
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A.
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Total at 15,000 units
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(30)
(450,000)
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Forecast Sales Volume and Sales Budget Raphael Frame Company prepared the following sales budget for 2016:...
Forecast Sales Volume and Sales Budget
Raphael Frame Company prepared the following sales budget for
2016:
Raphael Frame Company
Sales Budget
For the Year Ending December 31, 2016
Product and Area
Unit Sales
Volume
Unit Selling
Price
Total Sales
8" × 10" Frame:
East
8,500
$16
$136,000
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6,200
16
99,200
West
12,600
16
201,600
Total
27,300
$436,800
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East
3,800
$30
$114,000
Central
3,000
30
90,000
West
5,400
30
162,000
Total
12,200
$366,000
Total revenue from...
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The sales-volume variance plus or minus the static budget amount
results in
A static budget variance
The variable-budget amount
An unfavourable/favourable amount
The flexible budget amount
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range of production is 500 units to 1,500 units):
Sales
$
70,000
Variable expenses
38,500
Contribution margin
31,500
Fixed expenses
23,310
Net operating income
$
8,190
5. If sales decline to 900 units, what would be the net
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6. If the selling price increases by $2 per unit and the sales
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follows.
At the end of December 20Y8, the following unit sales data were
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Unit Sales
8" × 10" Frame
12" × 16" Frame
East
21,012
12,064
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5,353
4,802
West
4,704
4,017
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Sales Budget
For the Year Ending December 31, 20Y8
Product and Area
Unit Sales
Volume
Unit Selling
Price
Total Sales
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For 20Y8, Raphael Frame Company prepared the sales budget that
follows.
At the end of December 20Y8, the following unit sales data were
reported for the year:
Unit Sales
8" × 10" Frame
12" × 16" Frame
East
23,278
14,456
Central
5,757
5,292
West
5,044
4,429
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Sales Budget
For the Year Ending December 31, 20Y8
Product and Area
Unit Sales
Volume
Unit Selling
Price
Total Sales
8" × 10" Frame:
East...
Forecast Sales Volume and Sales Budget For 20Y6, Raphael Frame Company prepared the sales budget that...
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For 20Y6, Raphael Frame Company prepared the sales budget that
follows.
At the end of December 20Y6, the following unit sales data were
reported for the year:
Unit Sales
8" × 10"
Frame
12" × 16"
Frame
East
31,200
9,240
Central
7,956
3,626
West
6,984
3,090
Raphael Frame Company
Sales Budget
For the Year Ending December 31, 20Y6
Product and Area
Unit Sales
Volume
Unit Selling
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Total Sales
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At the end of December 20Y6, the following unit sales data were
reported for the year:
Unit Sales
8" × 10"
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12" × 16"
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East
26,355
9,010
Central
6,695
3,626
West
5,820
3,060
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Sales Budget
For the Year Ending December 31, 20Y6
Product and Area
Unit Sales
Volume
Unit Selling
Price
Total Sales
8" × 10" Frame:
East...
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