Based on a predicted level of production and sales of 22,000 units,a company anticipates total variable costs of $99,000,fixed costs of $30,000,and operating income of $36,000.Based on this information,the budgeted amount of fixed costs for 20,000 units would be:
A)$99,000.
B)$90,000.
C)$66,000.
D)$30,000.
E)$150,000.

Question

Quizplus · Accepted Answer

Fixed costs remain constant regardless of the level of production or sales. Therefore, if the fixed costs are $30,000 for 22,000 units, they will remain $30,000 for 20,000 units.

Based on a Predicted Level of Production and Sales of 22,000