This Question: 2 pts 19 of 23 (10 complete) This Quiz: 55 pts possible Davis Cor

Question

This Question: 2 pts 19 of 23 (10 complete) This Quiz: 55 pts possible Davis Corporation manufactures and sells portable radios. The radio sells for $75.00 per unit and its variable costs per unit are $30.00. Fixed costs are $50,000 per month for sales volumes up to 26,000 radios. If more than 26,000 radios are sold, the fixed costs will be $47,000. The flexible budget would reflect what monthly operating income for a sales volume of 49,000 radios? O A. $3,675,000 O B. $47,000 O C. $2,205,000 O D. $2,158,000

Explanation / Answer

contribution margin (75-30)*49000= 2205000 less:fixed cost 47000 net income 2158000 answer )option d 2,158,000

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