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begin using a flexible budgeting system, rather than use only the current master budget. The Appliance Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants following data are available for AP's expected costs at production levels of 89,000, 103,000, and 117,000 units Variable costs $7per unit $3 per unit Manufacturing Administrative Selling $2 per unit Fixed costs $134,000 Manufacturing Administrative $71,000 Part 1 Prepare a flexible budget for each of the possible production levels: 89,000, 103,000, and 117,000 units. (List variable costs before fixed costs) APPLIANCE POSSIBLE INC. Flexible Production Cost Budget $ $ Part 2 If AP sells the toaster ovens for $16 each, how many units will it have to sell to make a profit of $240,600 before taxes? Units to be sold Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $172,800 to $215,400. Variable costs and their percentage relationship to sales are sales commissions 7 %, advertising 4 %, travel 4 % , and delivery 1 %. Fixed selling expenses will consist of sales salaries $35,500, depreciation on delivery equipment $7,500, and insurance on delivery equipment $1,100. Prepare a monthly selling expense flexible budget for each $14,200 increment of sales within the relevant range for the year ending December 31, 2020. (List variable costs before fixed costs) FALLON COMPANY Monthly Selling Expense Flexible Budget For the Year 2020 $