Appliance Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to begin using a flexible budgeting system, rather than use only the current master budget. The following data are available for APs expected costs at production levels of 89,000, 103,000, and 117,000 units.

Variable costs
Manufacturing		$7 per unit
Administrative		$4 per unit
Selling		$2 per unit
Fixed costs
Manufacturing		$151,000
Administrative		$77,000

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
ManufacturingFixed CostsTotal Fixed CostsTotal Variable CostsTotal CostsProduction LevelsVariable CostsAdministrativeSellingActivity Level
Fixed CostsAdministrativeTotal Variable CostsTotal Fixed CostsTotal CostsActivity LevelSellingVariable CostsManufacturingProduction Levels
Fixed CostsProduction LevelsAdministrativeActivity LevelTotal Variable CostsSellingVariable CostsManufacturingTotal Fixed CostsTotal Costs
Production LevelsActivity LevelAdministrativeTotal Variable CostsFixed CostsTotal Fixed CostsTotal CostsManufacturingSellingVariable Costs		$		$		$
Fixed CostsManufacturingAdministrativeTotal Variable CostsVariable CostsProduction LevelsTotal CostsActivity LevelSellingTotal Fixed Costs
Total CostsFixed CostsTotal Variable CostsVariable CostsProduction LevelsTotal Fixed CostsSellingAdministrativeActivity LevelManufacturing
Total Variable CostsActivity LevelManufacturingFixed CostsTotal Fixed CostsVariable CostsTotal CostsAdministrativeSellingProduction Levels
Variable CostsTotal CostsTotal Variable CostsTotal Fixed CostsManufacturingActivity LevelSellingFixed CostsAdministrativeProduction Levels
Total Fixed CostsManufacturingSellingActivity LevelProduction LevelsTotal Variable CostsFixed CostsTotal CostsAdministrativeVariable Costs
Total CostsVariable CostsTotal Variable CostsSellingFixed CostsManufacturingProduction LevelsActivity LevelAdministrativeTotal Fixed Costs
Total CostsTotal Variable CostsTotal Fixed CostsManufacturingVariable CostsAdministrativeSellingFixed CostsActivity LevelProduction Levels
Fixed CostsSellingTotal Variable CostsManufacturingVariable CostsTotal CostsAdministrativeActivity LevelProduction LevelsTotal Fixed Costs		$		$		$

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If AP sells the toaster ovens for $17 each, how many units will it have to sell to make a profit of $208,000 before taxes?

Units to be sold

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