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

A) $16,494
B) $19,520
C) $18,760
D) $16,767

The flexible budget formula for net operating income is:

Sales - Variable Cost - Fixed Cost = Net Operating Income

Using the data provided:
- Sales: $55,000
- Variable Cost: ($22,000 x 80%) + ($33,000 x 60%) = $17,600 + $19,800 = $37,400
- Fixed Cost: $16,500

Plugging the numbers into the formula:
$55,000 - $37,400 - $16,500 = $1,100

Therefore, the net operating income in the flexible budget for November would be closest to $18,760 (C).

Net operating income = ($15.20 × 6,050)− $73,200 = $18,760
Reference: CH09-Ref5
Tomlison Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgets and performance reports.During October, the company budgeted for 5,100 units, but its actual level of activity was 5,150 units.The company has provided the following data concerning the formulas to be used in its budgeting: