18. A company's flexible budget for 12,000 units of production showed sales, $48,000; variable costs, $18,000; and fixed costs, $16,000. The sales expected if the company produces and sells 16,000 units is: a. $24,000. b. $18,000. c. $48,000. d. $40,000. e. $64,000.

e. $64,000.

Explanation:

The computation of the sales expected in the case of 16,000 units

Sales on 16,000 units is

= Budgeted sales ÷ Budgeted volume × Actual volume

= $48,000 ÷ 12,000 units × 16,000 units

= $64,000

hence, the sales expected in the case of 16,000 units is $64,000

Therefore the correct option is e

Hence, the same is to be considered

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