Solved

Sassy Company Sells Its Widgets for $20 Each

Question 5

Multiple Choice

Sassy Company sells its widgets for $20 each. Its variable cost is $12 per widget. Fixed costs are $150,000 per month for volumes up to 70,000 widgets. Above 70,000 widgets, monthly fixed costs are $200,000. What is the budgeted operating income at a level of 60,000 widgets per month?


A) $280,000
B) $330,000
C) $480,000
D) $1,200,000

Correct Answer:

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