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Social Science Clinic => Accounting => Topic started by: MGLQZ on Jan 5, 2020

Title: Myer Appliances sells its microwave ovens for $110 each. Its variable cost is $65 per microwave ...
Post by: MGLQZ on Jan 5, 2020

Myer Appliances sells its microwave ovens for $110 each. Its variable cost is $65 per microwave oven. Fixed costs are $90,000 per month for volumes up to 2,000 microwave ovens. Above 2,000 microwave ovens, monthly fixed costs are $135,000.


.What is the Myer Appliances' budgeted operating income (loss) at a sales level of 2,500 microwave ovens per month?
◦ Operating income of $140,000
◦ Operating loss of $22,500
◦ Operating income of $112,500
◦ Operating income of $22,500

Title: Myer Appliances sells its microwave ovens for $110 each. Its variable cost is $65 per microwave ...
Post by: akudia on Jan 5, 2020

Operating loss of $22,500