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Business, 05.05.2020 17:10 railfan98

Terry's Appliances manufactures and sells parts for the new washer. The parts for the new washers sell for $60, and the variable operating costs per unit are $10. The managerial accountant reported fixed costs of $12,000 per month, which produces a sales volume of 14,000 parts. The manager needs to sell 20,000 parts to meet the sales quota and incur no more than $50,000 of fixed costs.

The flexible budget, with a sales volume of 32,000 parts, would show operating income of:

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