Stafford Company Prepared a Static Budget for a Production and Sales

Multiple Choice

Stafford Company prepared a static budget for a production and sales volume of 10,000 units. $\begin{array}{|l|c|c|}\hline & & \text { Static Budget } \\\hline \text { Number of units } && \$ \quad 10,000\\\hline&\text { Per unit} \\&\text { standards}\\\hline \text { Sales revenue } & \$ 65.00&\$650,000 \\\hline \text { Variable manufacturing costs: } & & \\\hline \text { Materials } & \$ 11.00&110,000 \\\hline \text { Labor } & \$ 9.00&90,000\\\hline \text { Overhead } & \$ 4.20 & 42,000 \\\hline \text { Variable general, selling, and } \\\text { administrative costs }& \$ 11.00 & 110,000 \\\hline \text { Contribution margin } & & \$ 298,000 \\\hline \text { Fixed costs } & & \\\hline \text { Manufacturing overhead } & & 100,800 \\\hline\text { General, selling, and administrative } \\\text { costs }&&45,000\\\hline \text { Net income } & & \$152,200 \\\hline\end{array}$ What is the net income if 9,000 units are sold?

A) $152,100
B) $152,400
C) $137,300
D) $122,400