Ibis Paper Company prepared the following static budget for November: Static Budget Units/Volume 10,000 ...
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Accounting
Ibis Paper Company prepared the following static budget for November:
Static Budget
Units/Volume 10,000
Per Unit
Sales Revenue $ 22 $220,000
Variable Costs 8 80,000
Contribution Margin 140,000
Fixed Costs 13,500
Operating Income/(Loss) $126,500
If a flexible budget is prepared at a volume of 13,700 units, calculate the operating income at 13,700 units of production. The production level is within the relevant range.
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