Allen Company manufactures staplers. The budgeted sales price is $14.00 per stapler, the variable costs are $3.00 per stapler, and budgeted fixed costs are $10,000. What is the budgeted operating income for 4,300 staplers?
A) $47,300
B) $37,300
C) $60,200
D) $12,900
B .B)
Sales ($14.00 x 4,300 staplers) $60,200
Variable costs ($3.00 x 4,300 staplers) 12,900
Contribution margin 47,300
Fixed costs 10,000
Operating income $37,300
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