Answer:
$34200
Explanation:
Given: The budgeted sales price= $14 per stapler
The variable cost= $3 per stapler.
Budgeted fixed cost= $12000.
Total number of stapler= 4200.
First finding the total revenue earned by Alphonse company, if they sell 4200 staplers.
Total revenue= [tex]Sales\ price\times number\ of\ staplers[/tex]
⇒ Total revenue= [tex]\$ 14\times 4200[/tex]
∴ Total revenue= $58800
Now, calculating total cost of manufacturing stapler.
Total cost= [tex]Fixed\ cost+ variable\ cost[/tex]
Total cost= [tex]\$ 12000+ \$ 3\times 4200[/tex]
⇒ Total cost= [tex]12000+12600[/tex]
∴ Total cost= [tex]\$ 24600[/tex]
Next computing the budgeted operating income.
Operating income= [tex]Total\ revenue- Total\ cost[/tex]
⇒ Operating income= [tex]\$ 58800-\$ 24600[/tex]
∴ Operating income= [tex]\$ 34200[/tex]
Hence, $34200 is the budgeted operating income for 4200 staplers.
