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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Answer the following statement true (T) or false (F)
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