Based on a predicted level of production and sales of 22,000 units, a company anticipates total variable costs of $99,000, fixed costs of $30,000, and operating income of $36,000. Based on this information, the budgeted amount of fixed costs for 20,000 units would be:Group of answer choices$99,000.$90,000.$66,000.$30,000.$150,000.
Question
Based on a predicted level of production and sales of 22,000 units, a company anticipates total variable costs of 30,000, and operating income of 99,000.66,000.150,000.
Solution
The budgeted amount of fixed costs would not change with the level of production or sales. Fixed costs are costs that do not vary with the level of output. Therefore, the budgeted amount of fixed costs for 20,000 units would still be $30,000.
Similar Questions
Required informationSkip to question[The following information applies to the questions displayed below.]The fixed budget for 21,900 units of production shows sales of $635,100; variable costs of $65,700; and fixed costs of $143,000.If the company actually produces and sells 26,300 units, calculate the flexible budget income.
A company's flexible budget for 21,000 units of production showed total contribution margin of $96,600 and fixed costs, $37,300. The income expected if the company produces and sells 24,000 units is:
Fill in the Blank QuestionFill in the blank question.A company sells 800 units at $16 each, has variable costs of $12 per unit, and fixed costs of $1,200. Income is $.
If you know that when a firm produces 10 units of output, total cost is $1,030 and average fixed cost is $10, then total variable cost isMultiple Choice$104.$930.$1,040.$1,130.
A firm has a production capacity of 20,000 units. When 10,000 units are produced, fixed costs are $16 per unit. Therefore, when 20,000 units are produced fixed costs will_______:Question 9Select one:a.remain at $16 per unitb.increase to $32 per unitc.total $320,000d.decrease to $8 per unit
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.