The net operating income in the planning budget for December would be closest to:

A) $10,156
B) $9,890
C) $7,309
D) $7,184

Question

The net operating income in the planning budget for December would be closest to:A) $10,156B) $9,890C) $7,309D) $7,184

jacqecy habbit · Accepted Answer

Final Answer : B, Explanation :  To calculate the net operating income, we need to subtract total operating expenses from total operating revenues.Planned operating revenues for December = $25,000Planned operating expenses for December = $15,110 + $3350 + $2650 = $21,110Net operating income = $25,000 - $21,110 = $3,890Therefore, the closest option to the net operating income in the planning budget for December is B) $9,890.   Net operating income = ($13.30 × 2,300)? $20,700 = $9,890Reference: CH09-Ref4Sunn Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgets and performance reports.During November, the company budgeted for 6,100 units, but its actual level of activity was 6,050 units.The company has provided the following data concerning the formulas to be used in its budgeting:

The net operating income in the planning budget for December would be closest to:

A) $10,156
B) $9,890
C) $7,309
D) $7,184

Definitions

Learning Objectives

Learning Objectives

Related questions