1.Platz company makes chairs . the budgeted selling price is $45 per chair, the

Question

1.Platz company makes chairs . the budgeted selling price is $45 per chair, the variable rate is $15 per chair and budgetd fixed costs are $40,000 per month. what is the budgeted opearting income for 3,200 chairs sold in a month?

2. A company 's flexible budget for 93,000 units of production showed of $300,000; variable costs of $150,000 : fixed costs of $90,000. what net operating income would you expect the company to earn if it produces and sells 98,000 units? ( assume 98,000 units is in the relevant range).

Explanation / Answer

1.

budgeted opearting income =3200*30-40000=56000

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