Infinity Clock Company prepared the following static budget for the? year: Static Budget ?Units/Volume ?9,000 Per Unit Sales Revenue ?$5.00 ?$45,000 Variable Costs 1.50 ?13,500 Contribution Margin ?31,500 Fixed Costs ?3,000 Operating? Income/(Loss) ?$28,500 If a flexible budget is prepared at a volume of? 8,900 units, calculate the amount of operating income. The production level is within the relevant range.
A. ?$28,150
B. ?$27,000
C. ?$3,000
D. ?$7,800
Ans: A. ?$28,150
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