document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=176799>Question 176799</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Can someone please help me with this:\r<BR>\n" );
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document.write( "Johansson Company developed the following static budget at the beginning of the company's accounting period:\r<BR>\n" );
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document.write( "Revenue(8,000 units) = $16,000<BR>\n" );
document.write( "Variable Costs = 4,000<BR>\n" );
document.write( "Contribution margin = $12,000<BR>\n" );
document.write( "Fixed costs = 4,000<BR>\n" );
document.write( "Net income = $8,000\r<BR>\n" );
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document.write( "If actual production totals 8,400 units, the flexible budget would show variable costs of:<BR>\n" );
document.write( "a. $16,400<BR>\n" );
document.write( "b. $4,000<BR>\n" );
document.write( "c. $4,100<BR>\n" );
document.write( "d. $4,200 </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #131923 by </B><A HREF=/tutors/aboutme.mpl?userid=Mathtut><B>Mathtut(3670)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Mathtut><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=131923\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Revenue(8,000 units) = $16,000<BR>\n" );
document.write( "Variable Costs = 4,000<BR>\n" );
document.write( "Contribution margin = $12,000<BR>\n" );
document.write( "Fixed costs = 4,000<BR>\n" );
document.write( "Net income = $8,000 <BR>\n" );
document.write( "If actual production totals 8,400 units, the flexible budget would show variable costs of:<BR>\n" );
document.write( "a. $16,400<BR>\n" );
document.write( "b. $4,000<BR>\n" );
document.write( "c. $4,100<BR>\n" );
document.write( "d. $4,200\r<BR>\n" );
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document.write( "the revenue per unit is $2(16000/8000)<BR>\n" );
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document.write( "the variable costs are 25% of revenue<BR>\n" );
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document.write( "so since the revenue from 400 more units is 800(400(2))<BR>\n" );
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document.write( "then the extra variable costs is 25% of 800 or $200<BR>\n" );
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document.write( "so total Variable costs should be $4200...CHOICE D </SPAN>\n" );
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