Thompson Company makes and sells power tools.The budgeted sales are $450,000, the budgeted variable costs are $150,000, and the budgeted total fixed cost is $230,000.What is the budgeted operating income?
A) $73,000
B) $227,500
C) $70,000
D) $84,500
E) $567,000

Question

Quizplus · Accepted Answer

Budgeted operating income = Sales - Budgeted variable expenses - Budgeted fixed expenses
Budgeted operating income = $450,000 - $150,000 - $230,000 = $70,000

Thompson Company Makes and Sells Power Tools