Given for Wicker Chair Co. The budgeted selling price is $52 per chair, the variable rate is $39.2 per chair and budgeted fixed costs are $78,3336 per month. What is the budgeted operating income for 7,200 chairs sold in a month?

The budgeted operating income for 7,200 chairs sold is $13,826.

Explanation:

Wicker Chair Co. budgeted operating income

Sales (7,200 chairs × $52)              $374,400

Less Expenses

Variable (7,200 chairs × $39.20)  ($282,240)

Fixed                                                 ($78,334)

Budgeted Income / (loss)                  $13,826  

Conclusion :

The budgeted operating income for 7,200 chairs sold is $13,826.

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