Answer:
$1,440,000
Explanation:
sales volume = 37,000 radios
Selling price per unit = $60
Variable costs per unit = $20
Fixed costs = $40,000
Monthly operating income
= Sales revenue - Variable costs - Fixed costs
= ($60 × 37,000) - ($20 × 37,000) - $40,000
= $2,220,000 - $740,000 - $40,000
= $1,440,000
Therefore, the flexible budget would reflect $1,440,000 as a monthly operating income for a sales volume of 37,000 radios.
