8 M Gmail Youlle 5121 - Managerial Accounting - SP20 - Sec 6734 O/L omework: HW 10 - Chapter 10 7 of 7 (4 comple more: 0 of 9 pts 10-43A (similar to) Blowing Bubbles, Inc., produces multicolored bubble solution used for weddings and other events (Click the icon to view the master budget income statement.) Blowing Bubbles plant capacity is 62,500 kits. If actual volume exceeds 62,500 kits, the company must expand the plant. In that case, salaries will increase by 10%, depreciation by 15%, and rent by $4,000. Fixed utilities will be unchanged by any volume increase Requ 1. Pre kits 2. Gre kits 3. Why form UNE utput UNIS INIUS) 60,000 65,000 55,000 Sales revenue Variable expenses: Cost of goods sold Sales commissions Utility expense Fixed expenses Salary expense Depreciation expense Rent expense Uly expense Total expenses Operating income Enter any number in the edit fields and then click Check Answer Clear All 1 2 3 4 crae 6 7 omplete) HW Score: 45.44%, 20.45 of 45 Question Help Requirements 1. Prepare flexible budget income statements for the company, showing output levels of 55,000, 60,000, and 65,000 Kits 2. Graph the behavior of the company's total costs. Use total costs on the y-axis and volume (in thousands of bubble kits) on the x-axis 3. Why might Blowing Bubbles managers want to see the graph you prepared in Requirement as well as the columna format analysis in Requirement 1? What is the disadvantage of the graphic approach? Check Answer Clear All & delet 9 7 of 7 (4 complete) dings and 0 Data Table atements 2,500 kits, by $4,000. ny's total The company's master budget income statement for December follows. It is based on expected sales volume of 55,000 bubble kits. agers want What is th TICS (NILS) 2000 Blowing Bubbles, Inc. Master Budget Income Statement Month Ended December 31 Sales revenue $ 165,000 Variable expenses: Cost of goods sold 68,750 Sales commissions 13,750 Utility expense 5,500 Fixed expenses: Salary expense 30,000 Depreciation expense 20,000 Rent expense 6,000 Utility expense 7,000 Total expenses ............... $ 151,000 Operating income... $ 14,000 Print Done