the answer is 15)C 16)D please explain 15) Allen Manufacturing makes staplers. T

Question

the answer is

15)C

16)D

please explain

15) Allen Manufacturing makes staplers. The budgeted selling price is $12 per stapler, the variable ts are $4 per stapler, and budgeted fixed costs are $12,000. What is the budgeted operating cos income for 5,000 staplers? B) $40,000 C) $28,000 D) $68,000 A) $60,000 16) Nancy was reviewing the water bill for her dog day care and spa and determined that her highest bill, $3,800, occurred in May when she washed 400 dogs and her lowest bill, $2,400, occurred in November when she washed 200 dogs. What was the fixed cost associated with Nancy's water bill? A) $2,400 B) $1,400 C) $3,800 D) $1,000

Explanation / Answer

15 Budgeted operating income = 5000*(12-4)-12000= 28000 16 Variable cost per unit = (3800-2400)/(400-200)= 7 Fixed cost = 3800-(400*7) = 1000

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