Amanda Manufacturing Company prepared the following static budget income statement: Revenues Variable Costs Contribution Margin: Fixed Costs Net Income…

Amanda Manufacturing Company prepared the following static budget income statement: Revenues Variable Costs Contribution Margin: Fixed Costs Net Income…

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Amanda Manufacturing Company prepared the following static budget income statement: Revenues Variable Costs Contribution Margin: Fixed Costs Net Income…
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Amanda Manufacturing Company prepared the following static budget income
statement:
Revenues
Variable Costs
Contribution Margin:
Fixed Costs
Net Income
$206,250
(131,250)
75,000
(40,000)
35,000
$
The budgeted costs were based on a planned sales volume of 7,500 units. Actual
production was 6,500 units.
The amount of net income based on a flexible budget of 6,500 units would have
been?
O

Expert Answer:

Answer rating: 100% (QA)

To calculate the flexible budget for 6 500 units we need to adjust the budgeted costs based on the a
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