Based on a predicted level of production and sales of 22,000 units, a company anticipates total variable costs of $99,000, fixed costs of $30,000, and operating income of $36,000. Based on this information, the budgeted amount of variable costs for 20,000 units would be:
A) $99,000.
B) $90,000.
C) $66,000.
D) $30,000.
E) $150,000.
B) $90,000.
Explanation: Variable cost per unit = $99,000/22,000 = $4.50 per unit
Budgeted variable costs @ 20,000 units = $4.50 × 20,000 = $90,000
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