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Based on a Predicted Level of Production and Sales of 30,000

Question 38

Multiple Choice

Based on a predicted level of production and sales of 30,000 units, a company anticipates total contribution margin of $105,000, fixed costs of $40,000, and operating income of $65,000. Based on this information, the budgeted operating income for 28,000 units would be:


A) $72,500.
B) $52,000.
C) $135,333.
D) $105,000.
E) $58,000.

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