The net operating income in the flexible budget for December would be closest to:

A) $16,430
B) $16,994
C) $11,795
D) $11,974

To solve this problem, we need to use the formula for calculating net operating income:

Net Operating Income = Sales - Variable Costs - Fixed Costs

Based on the data in the question, we can calculate the flexible budget for December as follows:

Sales = 10,300 units x $4.50 per unit = $46,350
Variable Costs = 10,300 units x $1.50 per unit = $15,450
Fixed Costs = $12,906

Plugging these numbers into the net operating income formula, we get:

Net Operating Income = $46,350 - $15,450 - $12,906 = $18,994

Therefore, the closest answer choice is B, $16,994, which is the answer choice that is closest to our calculated net operating income of $18,994.

Net operating income = ($14.10 × 5,340)− $58,300 = $16,994
Reference: CH09-Ref12
Kekiwi Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgets and performance reports.During January, the company budgeted for 6,900 units, but its actual level of activity was 6,910 units.The company has provided the following data concerning the formulas used in its budgeting and its actual results for January:
Data used in budgeting: Actual results for January: