Respuesta :
Answer:
Flexible cost is equal to $16000
Therefore option (d) will be correct answer
Explanation:
It is given expected volume = 8000 units
Per unit revenue = $4
Variable cost = $1.50
Contribution margin = $2.50
Fixed cost per unit = $2
We have to find flexible budget which show fixed cost
Flexible cost is equal to =[tex]=8000\times $2=$16000[/tex]
Therefore option (A) is the correct answer.
Answer:
$16,000.
Explanation:
Given:
Expected total production = 8,000 units
Revenue = $4 per unit
Variable costs = 1.50 per unit
Contribution margin = $2.50 per unit
Fixed costs = $2 per unit
Net income = $0.50 per unit
Actual total production = 10,000 units
Computation:
Based expected total production = 8,000 units
Total expected fixed costs = 8,000 units × $2
Total expected fixed costs = $16,000
Fixed cost will never change .
