Children Toys Limited makes and sells a single product. The company employs a flexible budgeting system that covers a relevant range from 25,000 units to 30,000 units and a just in time inventory system. Budget data for April, based on 27,000 units, are as follows:
$\begin{array} { | l | r | }
\hline \text { Prime costs } & \$ 35 \text { per unit } \
\hline \text { Manufacturing overhead } & \$ 137,000 \text { plus } \$ 4 \text { per unit } \
\hline \text { Selling and administrative expenses } & \$ 35,000 \text { plus } \$ 3 \text { per unit } \
\hline \text { Selling price } & \$ 75 \text { per unit } \
\hline
\end{array}$

-What is the company's master budget operating income (loss)for April?

Question

Children Toys Limited makes and sells a single product. The company employs a flexible budgeting system that covers a relevant range from 25,000 units to 30,000 units and a just in time inventory system. Budget data for April, based on 27,000 units, are as follows:
$\begin{array} { | l | r | } 
\hline \text { Prime costs } & \$ 35 \text { per unit } \
\hline \text { Manufacturing overhead } & \$ 137,000 \text { plus } \$ 4 \text { per unit } \
\hline \text { Selling and administrative expenses } & \$ 35,000 \text { plus } \$ 3 \text { per unit } \
\hline \text { Selling price } & \$ 75 \text { per unit } \
\hline
\end{array}$

-What is the company's master budget operating income (loss)for April?

Quizplus · Accepted Answer

The Answer of Children Toys Limited makes and sells a single product. The company employs a flexible budgeting system that covers a relevant range from 25,000 units to 30,000 units and a just in time inventory system. Budget data for April, based on 27,000 units, are as follows:
$\begin{array} { | l | r | } 
\hline \text { Prime costs } & \$ 35 \text { per unit } \
\hline \text { Manufacturing overhead } & \$ 137,000 \text { plus } \$ 4 \text { per unit } \
\hline \text { Selling and administrative expenses } & \$ 35,000 \text { plus } \$ 3 \text { per unit } \
\hline \text { Selling price } & \$ 75 \text { per unit } \
\hline
\end{array}$

-What is the company's master budget operating income (loss)for April?

Children Toys Limited Makes and Sells a Single Product -What Is the Company's Master Budget Operating Income (Loss)for April