The current annual budget for Armstrong Ltd. indicates total revenue of $8,000,000. The total variable costs are $1,600,000 and fixed costs are $5,600,000. Calculate the budgeted net income.
A) $6,400,000
B) $2,400,000
C) $1,200.000
D) $800,000
E) ($4,000,000) Loss

Question

Quizplus · Accepted Answer

The budgeted net income is calculated as total revenue minus total variable costs and fixed costs: $8,000,000 - $1,600,000 - $5,600,000 = $800,000.

The Current Annual Budget for Armstrong Ltd