Tomlison Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 5,100 units, but its actual level of activity was 5,150 units. The company has provided the following data concerning the formulas to be used in its budgeting:

-The net operating income in the planning budget for October would be closest to:
A) $22,470
B) $23,355
C) $28,108
D) $27,565

Question

Tomlison Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 5,100 units, but its actual level of activity was 5,150 units. The company has provided the following data concerning the formulas to be used in its budgeting:
 
-The net operating income in the planning budget for October would be closest to:
A) $22,470 
B) $23,355 
C) $28,108 
D) $27,565

Quizplus · Accepted Answer

11ea7761_1756_0e02_81a5_61ac923299fb_TB2580_00 Net operating income = ($17.70 × 5,100) − $67,800 = $22,470

Tomlison Corporation Manufactures and Sells a Single Product