Accounting · Flexible Budget Capacity
Gemma Co.'s full operating capacity is 10,000 units. Management has requested a flexible budget. What are the output volumes corresponding to 80% capacity and 100% capacity?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 180% capacity = 5,000 units; 100% capacity = 10,000 units
- 280% capacity = 8,000 units; 100% capacity = 10,000 units✓
- 380% capacity = 8,000 units; 100% capacity = 5,000 units
- 480% capacity = 7,000 units; 100% capacity = 10,000 units
Correct answer
80% capacity = 8,000 units; 100% capacity = 10,000 units
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