Question: a packaging company produces cardboard boxes in an automated process...

A packaging company produces cardboard boxes in an automated process. The required direct materials costs $0.30 per unit. Fixed manufacturing overhead costs are budgeted at $24,000 per month and are allocated based on units of production. The budgeted contribution margin per unit is $0.85, and administration fixed costs are budgeted at $7,500 per month.

Question: What is the flexible budget amount for operating income for 40,000 and 20,000 units, respectively?

		a) $2,500; $1,250
		b) $44,000; $22,000
		c) $36,000; $30,000
		d) $44,000; $38,000
		e) $2,500; <$14,500>