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Portobello Company Prepared the Following Static Budget for the Coming

Question 11

Multiple Choice

Portobello Company prepared the following static budget for the coming month:
 Static Budget  Units/volume 5,000 Per Unit  Sales revenue $3.00$15,000 Variable expenses $1.809,000 Contribution margin 6,000 Fixed expenses 5,000 Operating income/(1oss)  $1,000\begin{array}{|l|l|r|}\hline \text { Static Budget } & & \\\hline \text { Units/volume } & & 5,000 \\\hline & \text { Per Unit } & \\\hline \text { Sales revenue } & \$ 3.00 & \$ 15,000 \\\hline \text { Variable expenses } & \$ 1.80 & 9,000 \\\hline \text { Contribution margin } & & 6,000 \\\hline \text { Fixed expenses } & & 5,000 \\\hline \text { Operating income/(1oss) } & & \$ 1,000 \\\hline\end{array}
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If a flexible budget was prepared at a volume of 4,000, how much would the operating income be?


A) ($200)
B) $500
C) $2,200
D) $1,000

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