[The following information applies to the questions displayed below.]
Baskin Promotions,Inc.sells T-shirts decorated for a variety of concert performers.The company has developed the following budget for the coming year based on a sales forecast of 80,000 T-shirts:
Cost of goods sold and variable operating expenses vary directly with sales,and the income tax rate is 30% at all levels of operating income.
If the concert season is slow due to poor weather,Baskin estimates that sales could fall to as low as 60,000 T-shirts.
-In a flexible budget for sales of 60,000 T-shirts,how much would Baskin budget for operating expenses?
A)$238,800
B)$338,800
C)$218,400
D)$418,400

Question

[The following information applies to the questions displayed below.]
Baskin Promotions,Inc.sells T-shirts decorated for a variety of concert performers.The company has developed the following budget for the coming year based on a sales forecast of 80,000 T-shirts:
  Cost of goods sold and variable operating expenses vary directly with sales,and the income tax rate is 30% at all levels of operating income.
If the concert season is slow due to poor weather,Baskin estimates that sales could fall to as low as 60,000 T-shirts.
-In a flexible budget for sales of 60,000 T-shirts,how much would Baskin budget for operating expenses?
A)$238,800 
B)$338,800 
C)$218,400 
D)$418,400

Quizplus · Accepted Answer

The Answer of [The following information applies to the questions displayed below.]
Baskin Promotions,Inc.sells T-shirts decorated for a variety of concert performers.The company has developed the following budget for the coming year based on a sales forecast of 80,000 T-shirts:
  Cost of goods sold and variable operating expenses vary directly with sales,and the income tax rate is 30% at all levels of operating income.
If the concert season is slow due to poor weather,Baskin estimates that sales could fall to as low as 60,000 T-shirts.
-In a flexible budget for sales of 60,000 T-shirts,how much would Baskin budget for operating expenses?
A)$238,800 
B)$338,800 
C)$218,400 
D)$418,400

[The Following Information Applies to the Questions Displayed Below