Infinity Clock Company prepared the following static budget for the year: Static Budget Units/Volume 5,000...
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Accounting
Infinity Clock Company prepared the following static budget for the year: Static Budget Units/Volume 5,000 Per Unit $3 1 Sales Revenue Variable Costs Contribution Margin Fixed Costs Operating Income/(Loss) $15,000 5,000 10,000 3,000 $7,000 If a flexible budget is prepared at a volume of 6,900 units, calculate the amount of operating income. The production level is within the relevant range. O A. $10,800 B. $6,900 O C. $7,000 D. $3,000 Fedor, Inc. has prepared the following direct materials purchases budget: Month June July August September October Budgeted DM Purchases $67,000 75,000 76,300 79,000 78,200 All purchases are paid for as follows: 10% in the month of purchase, 40% in the following month, and 50% two months after purchase. Calculate total budgeted cash payments made in October for purchases. O A. $45,970 B. $69,750 C. $39,420 OD. $77,570
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