Desjardin's makes power tools. The budgeted sales are $550,000, budgeted variable costs are $230,000, and budgeted fixed costs are $227,500.
-Refer to the Figure.What is the budgeted operating income?
A)$92,500
B)$320,000
C)$322,500
D)$457,500

Question

Quizplus · Accepted Answer

Budgeted operating income is calculated as budgeted sales minus budgeted variable costs minus budgeted fixed costs. So, $550,000 - $230,000 - $227,500 = $92,500.

Desjardin's Makes Power Tools