Alphonse Company manufactures staplers.The budgeted sales price is $14.00 per stapler,the variable costs are $3.00 per stapler,and budgeted fixed costs are $12,000.What is the budgeted operating income for 4200 staplers?

Question

Quizplus · Accepted Answer

First, calculate the total variable cost:
4200 x $3.00 = $12,600

Next, calculate the total revenue:
4200 x $14 = $58,800

Finally, calculate the operating income (profit):
Total Revenue - Total Variable Cost - Fixed Cost
$58,800 - $12,600 - $12,000 = $34,200

Therefore, the budgeted operating income for 4200 staplers is $34,200, which corresponds to choice B.

Alphonse Company Manufactures Staplers