Family Furniture sells a table for $950. Its fixed costs are $2,500, while its variable costs are $500 per table. It currently plans to sell 180 tables this month.
What is the budgeted operating income for the month assuming that Family Furniture sells 180 tables?
A) $168,500
B) $81,000
C) $78,500
D) $171,000

Question

Quizplus · Accepted Answer

Budgeted operating income = $171,000 - [(180 × $500) + $2,500] = $171,000 ? $92,500 = $78,500

Family Furniture Sells a Table for $950