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 $10,000.What is the budgeted operating income for 4300 staplers?
A) $47,300
B) $37,300
C) $60,200
D) $12,900

Question

Quizplus · Accepted Answer

Budgeted operating income can be calculated as:

Revenue - Total Variable Costs - Fixed Costs

For 4300 staplers, the revenue will be:

4300 x $14 = $60,200

The total variable cost will be:

4300 x $3 = $12,900

Therefore, the budgeted operating income will be:

$60,200 - $12,900 - $10,000 = $37,300

So, the best choice is B.

Alphonse Company Manufactures Staplers