$1,300,000 840,000 $ 460,000 4. Big Bend Co. fixed budget for the year is shown below: Sales (50,000 units). Cost of goods sold: Direct materials ..... $150,000 Direct labor.. 450,000 Overhead (includes $2 per unit variable overhead). 240,000 Gross profit.. Selling expenses: Sales commissions(all variable)... 60,000 Rent (all fixed)..... 40,000 Insurance (all fixed)....... 35,000 General and administrative expenses: Salaries (all fixed).. 72,000 Rent (all fixed) ............. 54,000 Depreciation (all fixed)....... 31,000 Net income from operations. 292,000 $ 168,000 Prepare a flexible budget for Big Bend Co. that shows a detailed budget for its actual sales volume of 42,000 units. Use the contribution margin format below: Flexible Budget units units 50,000 42,000 Sales Variable Cost: Direct Materials Direct Labor Variable OH Sales Commissions Total Variable Cost Contribution Margin Fixed Cost: Fixed OH Rent Expense - Selling Insurance - Selling Salaries - General Rent - General Depreciation - General Total Fixed Cost Income from Operations