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Whistle Works manufacturers safety whistle keychains. They have the following information available to prepare their...

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Question

Accounting

Whistle Works manufacturers safety whistle keychains. They have the following information available to prepare their master budget:

Operating Expenses
Variable Operating Costs $.75 per unit sold
Fixed Operating Costs $475,000
Other Info:
Units produced in 2016 42,000
Units sold in 2016 40,500

Whistle Works sells each whistle for $12. It's been determined that each unit costs $7.25 to manufacture. How much is total budgeted operating expenses for the year ended 2016?

$61,875

$505,375

$506,500

$475,000

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