Question

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:

Answer 1

*Assumed Fixed cost will remain at all 3 levels of production.