Alphonse Company manufactures staplers. The budgeted sales price is $ 12 per stapler, the variable costs are $ 3 per stapler, and budgeted fixed costs are $ 12 comma 000. What is the budgeted operating income for 4 comma 500 staplers?

Operating income $28,500

Explanation:

The budgeted income is the difference between the budgeted sales revenue and budgeted costs

$

Budgeted revenue (12 * 500) 54,000

Variable cost (3 * 4500) (1,500)

Contribution 52500

Budgeted fixed cost (12,000)

operating income 28,500

Operating income $28,500