2. Harland Corporation currently produces cardboard boxes in an automated process. Expected production per month is 20,000 units, direct material costs are $3.50 per unit, and manufacturing overhead costs are $12,000 per month. Manufacturing overhead is all fixed costs. What is the flexible budget for 16,000 units? (A) $68,000 (B) $82,000 (C) $65,600 (D) $56,000

1. Guble Manufacturing produces a single product that sells for $70. Variable costs per unit equal $45. The company expects total fixed costs to be $52,000 for the next month at the projected sales level of 2,500 units. In an attempt to improve performance, management is considering an alternative action. Suppose that management believes that a 10% reduction in the selling price will result in a 10% increase in units sold. If this proposed reduction in selling price is implemented ________. (A) operating income will decrease by $10,500 (B) operating income will increase by $11,500 (C) operating income will decrease by $13,000 (D) operating income will increase by $22,000

相關試題

相關試卷