Question
Use the following data to prepare a flexible budget for possible sales/production levels of 15,000; 20,000;...
| Use the following data to prepare a flexible budget for possible sales/production levels of 15,000; 20,000; and, 25,000 units. Ensure you include the contribution margin at each activity level. | ||||||||
| Sales price | $25 | per unit | ||||||
| Variable costs: | ||||||||
| Manufacturing | $13 | per unit | ||||||
| Administrative | $4.00 | per unit | ||||||
| Selling | $1.25 | per unit | ||||||
| Fixed costs: | ||||||||
| Manufacturing | $50,000 | |||||||
| Administrative | $35,000 | |||||||
| Response: | ||||||||
Homework Answers
Answer #1
*Assumed Fixed cost will remain at all 3 levels of production.
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