What is the budgeted operating income for 15,000 calculators sold if the budgeted selling price is $120 per calculator, the variable rate is $98 per calculator, and fixed costs are $150,000?

To determine the budgeted operating income, we first need to calculate the total revenue, total variable costs, and then account for fixed costs.

1. Calculate Total Revenue: This is obtained by multiplying the budgeted selling price per calculator by the number of calculators sold. So, for 15,000 calculators at $120 each, the calculation is: [

\text{Total Revenue} = 15,000 \times 120 = 1,800,000 ]

2. Calculate Total Variable Costs: This involves multiplying the variable cost per calculator by the number of calculators sold. With a variable rate of $98 per calculator, the calculation becomes: [ \text{Total Variable Costs} = 15,000 \times 98 = 1,470,000 ]

3. Calculate Contribution Margin: This is found by subtracting total variable costs from total revenue: [ \text{Contribution Margin} = \text{Total Revenue} - \text{Total Variable Costs} = 1,800,000 - 1,470,000 = 330,000 ]

4. Subtract Fixed Costs: To arrive