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Summer Nights sells bottles of bug spray for
$7.50
each. Variable costs are
$2.00
per bottle, while fixed costs are
$35,000
per month for volumes up to
50,000
bottles of spray and
$56,000
per month for volumes above
50,000
bottles of spray. The flexible budget would reflect monthly operating income for
18,000
bottles of spray and
31,000
bottles of spray of what dollar amounts?
A.
$135,000
and
$232,500,
respectively
B.
$100,000
and
$135,500,
respectively
C.
$64,000
and
$135,500,
respectively
D.
$43,000
and
$176,500,
respectively
Answer & Explanation
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