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 AP's expected costs at production levels of 80,000, 90,000, and 100,000 units. Variable costs Manufacturing Administrative Selling Fixed costs Manufacturing Administrative $6 per unit $3 per unit $1 per unit $130,000 $70,000 Prepare a flexible budget for each of the possible production levels: 80,000, 90,000, and 100,000 units. (List variable costs before fixed costs.) APPLIANCE POSSIBLE INC. Flexible Production Cost Budget Activity Level Production Levels 80.000 90,000 100 Variable Costs Manufacturing $ 480.000 i 540,000 i 600,000 Administrative 240,000 i 270,000 300,000 Selling 80,000 90.000 i 100,000 Total Variable Costs 800,000 900,000 i 1000000 Fixed Costs Manufacturing 130,000 130.000 i 130,000 Administrative 70,000 i 70,000 i 70,000 Total Fixed Costs 200,000 200,000 i 200.000 Total Costs 1.000.000 1.100,000 i 1.200.000 (b) Your answer is incorrect. If AP sells the toaster ovens for $14 each, how many units will it have to sell to make a profit of $220,000 before taxes? Units to be sold Arrilled