Solution-What the budgeted amount of net income

What the budgeted amount of net income

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Question - Cox Manufacturing Company prepared the following static budget income statement :

Sales Revenue $125,000

Variable Costs (75,000)

Contribution Margin 50,000

Fixed Cost (30,000)

Net income $20,000

The static budget was based on an expected sales volume of 5,000 units. Actual sales volume was 6,000 units.

What the budgeted amount of net income based on a flexible budget of 6,000 units?

a. $24,000.

b. $26,000.

c. $30,000

d. $45,000.

Reference no: EM133169072

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What the budgeted amount of net income

Reference no: EM133169072

Reference no: EM133169072

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