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:

Respuesta :

Answer:

Budgeted amount of fixed cost for 20,000 units = $30,000

Explanation:

For 22,000 units, Budgeted fixed cost was $30,000

Thus, since fixed cost do not change in totality under ordinary circumstances, the same amount of fixed cost would be budgeted for 20,000 units as well

Lanuel

Based on the information given, the budgeted amount of fixed costs for 20,000 units would be $30,000.

What is a budget?

A budget simply means a financial plan that is used by an individual, business organization or government to estimate the amount of revenue and expenditures over a specified period of time, and it is usually on an annual basis i.e one year.

In this scenario, the budgeted amount of fixed costs for 20,000 units would be equal to $30,000 because fixed cost remains the same and doesn't change under ordinary circumstances.

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