Myer Appliances sells its microwave ovens for $110 each. Its variable cost is $65 per microwave oven. Fixed costs are $90,000 per month for volumes up to 2,000 microwave ovens. Above 2,000 microwave ovens, monthly fixed costs are $135,000.
-.What is the Myer Appliances' budgeted operating income (loss) at a sales level of 2,500 microwave ovens per month?
A) Operating loss of $22,500
B) Operating income of $22,500
C) Operating income of $112,500
D) Operating income of $140,000
Correct Answer:
Verified
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