Author Question: Myer Appliances sells its microwave ovens for $110 each. Its variable cost is $65 per microwave ... (Read 134 times)

cagreen833 · **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 1,900 microwave ovens per month?
◦ Operating loss of $49,500
◦ Operating income of $85,500
◦ Operating income of $119,000
◦ Operating loss of $4,500

jessicaduplan · **Reply #1 on:** Jan 5, 2020

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