Based on a predicted level of production and sales of 15,000 units, a company anticipates reporting operating income of $22,000 after deducting variable costs of $90,000 and fixed costs of $8,000. Based on this information, the budgeted amounts of fixed and variable costs for 18,000 units would be:_______a.$8,000 of fixed costs and $90,000 of variable costs.b.$8,000 of fixed costs and $102,000 of variable costs.c.$9,600 of fixed costs and $90,000 of variable costs.d.$9,600 of fixed costs and $108,000 of variable costs.e.$8,000 of fixed costs and $108,000 of variable costs.

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pedrocarratore pedrocarratore · Answer 1 · 2020-01-17T06:20:06+01:00

Answer:

e.$8,000 of fixed costs and $108,000 of variable costs.

Explanation:

Fixed costs don't change with a change in production volume, therefore, fixed costs remain $8,000.

The cost per unit to produce 15,000 units is:

[tex]C =\frac{\$90,000}{15,000}\\C=\$6/unit[/tex]

Assuming a new production volume of 18,000 units, budgeted variable costs are:

[tex]V_c=\$6*18,000= \$108,000[/tex]

The budgeted amounts are: e.$8,000 of fixed costs and $108,000 of variable costs.