15 . A company's flexible budget for 12,000 units of production showed sales, $48,000; variable costs, $18,000; and fixed costs, $16,000. The net income you would expect the company to earn if it produces and sells 15,000 units is:

$21,500

Explanation:

Particulars                Amount       Per Unit    15000 Units

Sales                        48,000.00      4.00          60,000

Less: Variable Cost 18,000.00       1.50           22,500

Contribution             30,000.00     2.50          37,500

Less: Fixed Cost      16,000.00                       16,000

Net Income              $14,000                         $21,500

So, the net income you would expect the company to earn if it produces and sells 15,000 units is $21,500.

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