Based on a predicted level of production and sales of 22,000 units, a company anticipates total variable costs of $99,000, fixed costs of $30,000, and operating income of $36,000. Based on this information, the budgeted amount of fixed costs for 20,000 units would be:

Budgeted amount of fixed cost for 20,000 units = $30,000

Explanation:

For 22,000 units, Budgeted fixed cost was $30,000

Thus, since fixed cost do not change in totality under ordinary circumstances, the same amount of fixed cost would be budgeted for 20,000 units as well

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