Sound Design Sells Its Computer Speakers for $115 Per Set

Multiple Choice

Sound Design sells its computer speakers for $115 per set.Its variable cost is $75 per set of speakers.Fixed costs are $80,000 per month for volumes up to 2,400 sets of speakers.Above 2,400 sets,monthly fixed costs are $115,000.What is the budgeted operating income (loss) at a sales level of 2,300 sets of speakers per month?

A) Operating loss of $23,000
B) Operating income of $92,000
C) Operating income of $12,000
D) Operating income of $184,500