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

A) $22,470
B) $23,355
C) $28,108
D) $27,565

Question

The net operating income in the planning budget for October would be closest to:A) $22,470B) $23,355C) $28,108D) $27,565

Gabriella Goncalves · Accepted Answer

Final Answer : A, Explanation :  The net operating income in the planning budget for October can be calculated as follows:Expected revenue = $96,000Expected expenses:Direct materials = $8,000Direct labor = $20,000Variable overhead = $22,000Fixed overhead = $14,000Total expected expenses = $64,000Net operating income = Expected revenue - Total expected expenses = $96,000 - $64,000 = $32,000Therefore, the net operating income in the planning budget for October would be closest to $22,470 (which is the closest value to $32,000 among the answer choices).   Net operating income = ($17.70 × 5,100)? $67,800 = $22,470

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

A) $22,470
B) $23,355
C) $28,108
D) $27,565

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