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The cost of an accountant for Carlos Candies, Inc. prepared the following static budget based on expected activity of 2,000 units.
1. If Carlos actually produced 1,500 units, the flexible budget would show variable costs of
a. 34,000
b. 22,666
c. 30,000
d. 25,500
2. If Carlos actually produced 2,200 units, the flexible budget would show fixed costs amounting to
a. 19,800
b. 18,000
c. 52,000
d. none of the above
Net operating income is defined as:
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