Davis Corporation Manufactures and Sells Portable Radios

Multiple Choice

Davis Corporation manufactures and sells portable radios.The radio sells for $35 per unit and its variable costs per unit are $30.Fixed costs are $64,000 per month for sales volumes up to 32,000 radios.If more than 32,000 radios are sold,the fixed costs will be $83,000.The flexible budget would reflect what monthly operating income for a sales volume of 41,000 radios?

A) $141,000
B) $122,000
C) $1,435,000
D) $205,000