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Thompson Company makes and sells power tools. The budgeted sales are $450,000, the budgeted variable costs are $150,000, and the budgeted total fixed cost is $230,000. What is the budgeted operating income

Sagot :

Based on the various costs and sales projections, the budgeted operating income is $70,000.

What is the budgeted operating income?

It can be found by the formula:

= Budgeted sales - Budgeted variable costs - Budgeted fixed costs

Solving gives:

= 450,000 - 150,000 - 230,000

= $70,000

In conclusion, the budgeted operating income is $70,000.

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