A company's flexible budget for 12,000 units of production showed per unit contribution margin of $3.00 and fixed costs,$20,000.The operating income expected if the company produces and sells 18,000 units is:

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The contribution margin per unit is $3.00, and the fixed costs are $20,000. If the company produces and sells 18,000 units, the total contribution margin will be $3.00 x 18,000 = $54,000. The operating income will be $54,000 - $20,000 = $34,000.

A Company's Flexible Budget for 12,000 Units of Production Showed